Indian Prime Minister Urges Citizens to Stop Buying Gold, Jewellery Stocks Plunge

Odaily Planet Daily News: Indian Prime Minister Narendra Modi has called on citizens to refrain from buying gold for at least a year to protect foreign exchange reserves. This appeal is surprising given that gold plays a vital role in savings, weddings, and religious festivals in India.

Speaking on Sunday, Modi stated: "For one year, regardless of the occasion, we should not purchase gold jewelry." He also urged the public to reduce fuel consumption and unnecessary overseas travel, noting that India spends a huge amount annually on gold imports and that people should avoid buying non-essential items.

It remains unclear to what extent the Indian public will heed Modi's call, but shares of local jewelry manufacturers experienced a broad decline on Monday. Titan Co., India's largest jeweler, fell as much as 6.6%, while Senco Gold and Kalyan Jewellers India saw their shares drop 10.8% and 9.5%, respectively. (Jin Shi)