Business
Gold prices keep rising, and jewelry companies are sounding the alarm
Gold prices held steady on Thursday, hovering near the record high hit the day before, helped by expectations of further U.S. rate cuts and political uncertainty.
David Gray | Afp | Getty Images
Amid global economic turbulence, the prices of precious metals have been climbing higher and higher.
The price of gold in particular has skyrocketed over the past year, rising more than 50%. For midsize jewelry companies aiming to offer fine gold necklaces, earrings and more at lower price points than legacy luxury jewelry brands, gold futures could be spelling trouble.
Though gold is often subject to market fluctuations, investors have been increasing their holdings over the past year over recession fears and market uncertainty, according to Goldman Sachs. Gold is on pace for its third straight year of double-digit gains, even hitting record highs this week during the government shutdown.
On Tuesday, gold prices hit $4,000 an ounce for the first time in history — and they’re showing no signs of slowing down.
Analysts from UBS wrote last week that lower interest rates, weakness in the dollar and political uncertainty will only continue to drive the price of gold higher.
“We now expect inflows for this year to be 830 metric tons, which is almost double our initial forecast of 450 metric tons at the start of the year,” the UBS analysts wrote in a note. “The key risk for gold is better U.S. growth and if the Fed is forced to raise rates due to inflation-related upside surprises.”
A Goldman Sachs report from late last month predicted the climb, forecasting that the price of gold will rise 6% through the middle of 2026 to $4,000 per troy ounce, a unit of measurement used for precious metals. The report categorized buyers of gold into two groups: conviction buyers, who purchase the metal consistently, and opportunistic buyers, who jump in “when they believe the price is right.”
The analysts said they expect central banks to continue buying gold for three more years.
“Our rationale is that emerging market central banks remain significantly underweight gold compared to their developed market counterparts and are gradually increasing allocations as part of a broader diversification strategy,” analyst Lina Thomas wrote.
And according to July survey data from the World Gold Council, roughly 95% of central banks expect global gold holdings to rise in the next year.
Gold futures
That uncertainty comes on top of an already turbulent global economy reeling from changing tariff policies from President Donald Trump. Though he made clear in August that gold will not be tariffed and that bars from Switzerland will not be subject to the country’s 39% tariff, Trump’s steep rates on other countries have been disrupting the global supply chain.
For jewelers, the rising price of the precious metal may be a cause for concern. Large retailers like Pandora and Signet have signaled that they are exploring price hikes or alternative manufacturing methods to counteract the hit they’re taking from gold.
And some jewelry companies that aim to offer gold products at lower price points, like Mejuri, are feeling the pressure too.
Mejuri, which aims to sell gold and luxury jewelry at more affordable levels than its competitors, announced last month that the company was being forced to raise its prices due to the rising cost of gold, silver and tariffs.
“While we’ve been doing everything we can to absorb the impact and preserve the quality and craftsmanship you expect from us, you’ll see some prices update on Monday, September 29th,” Mejuri wrote in an email to customers. “We’re tackling these shifts head-on: streamlining our supply chain, strengthening sourcing and designing with pricing in mind.”
The company said it’s also innovating new products like 10 karat solid gold to keep offering quality jewelry at affordable prices. Mejuri declined to comment.
‘A fear indicator’
With the price of gold rising and showing no signs of stopping, some jewelry companies are being forced to be innovative with their pricing and products.
In its second-quarter earnings report in August, Pandora said it faced an 80-basis point hit due to higher prices of gold and silver and that it planned some price adjustments to offset those headwinds. And on Signet’s most recent earnings call in early September, the company said it had seen more than 30% increase in the cost of gold.
BaubleBar, which specializes in fine jewelry, offers a large selection of “demi-fine” gold pieces, which co-founder Daniella Yacobovsky said has allowed the company to somewhat avoid the brunt of the pressure from gold prices.
The company’s demi-fine jewelry features a thick, high-quality 18k gold plated over a sterling silver base, which allows BaubleBar to avoid the costs associated with solid gold jewelry. The brand’s demi-fine earrings range from anywhere between $50 to $150.
“We’ve actually seen a really huge increase in interest in demi-fine,” Yacobovsky told CNBC. “I think that it offers people a really fantastic alternative to solid gold. … You’re going to get a really fantastic quality similar to that for a lower price point.”
Still, Yacobovsky said it’s concerning that significant events affecting the global economy are happening at higher rates than even five years ago. She said she hasn’t seem something as volatile as the skyrocketing price of gold in the industry “for a long time.”
The key, she said, will be for businesses to capitalize on their ability to make smart choices.
For Alexis Bittar, CEO of his eponymous jewelry company, the smart choice meant leaning into gold-plated pieces, which allows the company to save costs over solid gold, and raising prices slightly to match the products that are coming in.
But the company is not repricing any of its existing products, Bittar said.
“You’re constantly juggling between the tariff and the acceleration of the gold prices, so you’re staying within a price point that you’re known for,” Bittar said. “From the consumer side, they’re not really caring. They vaguely know the prices of gold are going up … but mentally, they have an unconscious price point that they’re looking to spend, and when you start to way exceed it, you’re pricing people out.”
Bittar said his company is seeing a “cautious” consumer, but that any pullback in spending is likely more related to solid gold than plated gold, and that the wealthy consumer base is more willing to pay higher prices than lower- or middle-income shoppers.
Even for ear piercing company Rowan, which also offers gold jewelry, the rapidly changing industry may be spelling trouble. CEO Louisa Schneider told CNBC that it’s hard to imagine any other industry whose raw material costs have risen as dramatically as gold.
Rowan Piercing Studio’s Suburban Square location in Ardmore, PA.
Courtesy: Rowan
Because ear piercing requires some level of surgical steel or titanium for ideal healing, Rowan often uses 14k gold to coat those materials, leaving the company “somewhat insulated” from the rising price of gold because it is required to uphold certain health and safety standards.
Still, Schneider said Rowan had to raise prices on some of its gold pieces in the beginning of the third quarter, which she said customers are willing to pay for because the company specializes in employing trained nurses for the piercings.
“This is a fear indicator. So that, from my standpoint, is quite concerning,” Schneider said. “Our expectation is that we do not see a significant reduction in the current pricing – if anything, we expect that gold will continue to be quite expensive. So we will continue to hedge ourselves and to work really closely with our vendors.”
Schneider said she’s seeing an “inflection point” in the price of gold and that it’s a cause for concern for all jewelry companies, but especially those that are unable to raise their prices to counteract the costs because they sell to non-luxury consumers who are less flexible with price changes.
Ultimately, she said this serves as a warning sign for the broader economy, even if it might not be hitting Rowan too hard.
“The demand is not coming from consumers that want to wear gold or industries that require gold as a component of manufacturing,” Schneider said. “This is coming from a hoarding of gold given an uncertainty around the U.S. dollar, and that’s unlike anything that we’ve seen.”
Correction: A previous version of this story misstated Signet’s sales.
The FTSE 100 hit new heights on Wednesday, boosted by gains in miners as the price of gold surpassed 4,000 dollars an ounce for the first time.
The FTSE 100 index closed up 65.29 points, or 0.7%, at 9,548.87, a new closing peak. It had earlier set a new intra-day best level of 9,577.08.
The FTSE 250 ended up 39.03 points, 0.2%, at 22,041.83, but the AIM All-Share closed down just 0.30 of a point at 796.07.
Gold traded at 4,044.28 dollars an ounce on Wednesday, up against 3,985.98 dollars on Tuesday, taking year-to-date gains to 54%.
It passed the 3,000 dollars milestone in March, just ahead of US President Donald Trump’s liberation day tariffs that sparked uncertainty and volatility on financial markets.
Gold has previously passed 2,000 dollars during the Covid-19 pandemic and 1,000 dollars during the global financial crisis back in March 2008.
Deutsche Bank’s Henry Allen pointed out that, as it stands, gold remains well on track for its strong annual increase since 1979, when the oil shock that year led to a huge surge in inflation.
Gold is traditionally seen as a safe port in a financial market storm.
But Russ Mould, investment director at AJ Bell noted gold’s strong performance this time around has, unusually, come at a time of strong market performance.
“Traditionally, investors would load up on the shiny stuff when markets look gloomy, not when they’re motoring ahead. It shows that investors are hedging their bets,” he said.
On the FTSE 100, gold miners Endeavour Mining and Fresnillo rose 2.7% and 3.0% respectively.
Another miner in the green was Anglo American which climbed 3.2% as Berenberg upgraded to ‘buy’ from ‘hold’, believing its deal with Teck Resources “will result in Anglo American shares continuing to outperform”.
Lloyds Banking Group climbed 3.7%, after the Financial Conduct Authority said the cost from car finance mis-selling would be at the lower end of its prior expectations.
The UK’s finance regulator said car finance mis-selling will cost providers around GBP8.2 billion, with an additional GBP2.8 billion of administrative costs, taking the total to GBP11 billion.
The UK’s financial regulator had previously estimated that the total cost of compensation could range from £9 billion to £18 billion.
Davy Research said the FCA review should be “well received as it further narrows the potential outcomes to the lower end of its initial range”, although it stressed “uncertainty remains”.
Other car finance providers were mixed. Close Brothers rose 5.4% and S&U PLC firmed 2.4% but Vanquis Banking fell 2.0%.
On the FTSE 250, Unite Group fell 10% after reporting beds sold for the 2025 to 2026 academic year fell to 95.2% from 97.5% the year prior, below its expectations.
Rental growth from the sales to date amounted to 4.0%, down from 8.2% a year ago.
Nonetheless, the company reiterated financial 2025 guidance for adjusted earnings per share of 47.5 pence to 48.25p, compared with 46.6p in 2024.
“We have sold 95% of beds and delivered rental growth of 4.0%. While this is slightly below our target, we saw a strong clearing period which has contributed to our outperformance of the wider (purpose-built student accommodation) sector,” said Joe Lister, Unite Students chief executive officer.
Tim Leckie, analyst at Panmure Liberum, said: “Citing outperformance versus the wider PBSA sector feels like a story we’ve heard before and investors may worry about buying the best house on the worst street.”
In economic news, the Office for National Statistics revised down UK government borrowing figures for the current fiscal year by £2 billion following an error in the tax receipts used to calculate the data.
The ONS said that HM Revenue & Customs had alerted it to inaccuracies in value-added tax receipts, the statistics agency relied on for its estimates for government borrowing published on September 19.
As a result of the errors, which cover the period from January to August this year, the ONS cut its estimate for government borrowing for the current fiscal year, which began in April, by £2 billion. It also reduced the borrowing figure for the previous fiscal year by £1 billion.
Correcting for the errors, the ONS said borrowing for the fiscal year to August was £81.8 billion, down from the £83.8 billion initially reported in its September 19 release.
The total is still above the £72.4 billion forecast for the period by the Office for Budget Responsibility, the UK’s official fiscal watchdog.
The pound was quoted lower at 1.3406 dollars at the time of the London equity market close on Wednesday, compared with 1.3440 dollars on Tuesday. The euro stood at 1.1615 dollars compared with 1.1672 dollars. Against the yen, the dollar was trading at 152.68 yen, higher compared with 151.02 yen.
In European equities on Wednesday, the CAC 40 in Paris leapt 1.2% and the DAX 40 in Frankfurt ended up 1.0%.
Stocks in New York were higher at the time of the London close. The Dow Jones Industrial Average was up 0.3%, the S&P 500 index was 0.5% higher and the Nasdaq Composite advanced 0.7%.
The yield on the US 10-year Treasury was quoted at 4.12%, narrowed from 4.13% on Tuesday. The yield on the US 30-year Treasury stood at 4.71%, trimmed from 4.73%.
Technology stocks climbed once on Wall Street shrugging off fears about AI profitability and concerns of a market bubble.
The Bank of England’s Financial Policy Committee thinks the risk of a “sharp correction” in the financial markets has increased.
The minutes of the FPC’s latest meeting read: “On a number of measures, equity market valuations appear stretched, particularly for technology companies focused on artificial intelligence.”
But Peter Oppenheimer at Goldman Sachs said while there are elements of investor behaviour and market pricing currently that rhyme with previous bubbles, there are key differences this time around.
“First, the appreciation of the technology sector has, so far, been driven by fundamental growth rather irrational speculation about future growth.
“Second, the leading companies that have seen the strongest returns have unusually strong balance sheets.
“Third, the AI space has, so far, been dominated by a few incumbents; most bubbles form in a period of huge competition as both investors and new entrants flock into the space.”
Brent oil traded at 66.40 dollars a barrel on Wednesday, up from 65.28 dollars late on Tuesday.
The biggest risers on the FTSE 100 were Antofagasta, up 113.0 pence at 2,793.0p, Lloyds Banking Group, up 3.08p at 86.38p, Anglo American, up 91.0p at 2,900.0p, Haleon, up 10.5p at 340.8p and Fresnillo, up 68.0p at 2,368.0p.
The biggest fallers on the FTSE 100 were ICG, down 96.0p at 2,176.0p, Segro, down 20.6p at 647.2p, Spirax, down 160.0p at 6,960.0p, Croda, down 49.0p at 2,823.0p and LondonMetric, down 2.5p at 180.6p.
Thursday’s global economic calendar sees German trade data and the Bundesbank’s monthly report.
Thursday’s UK corporate calendar has half year results from specialist finance provider S&U and a trading statement from Upper Crust owner SSP.
Contributed by Alliance News
Business
Silver rate today: Prices climb to Rs 1.57 lakh/kg as global demand drives record rally; what investors need to know – The Times of India
Silver rate today: Silver prices surged for the third consecutive day on Wednesday, gaining Rs 3,000 to trade near a record high of Rs 1,57,000 per kilogram in the national capital amid global uncertainties and the prolonged US government shutdown.The white metal had closed at Rs 1,54,000 per kg on Tuesday and touched Rs 1,57,400 per kg on Monday, according to the All India Sarafa Association, PTI reported. So far in 2025, silver has jumped Rs 67,300, or 75.03 per cent, from Rs 89,700 per kilogram at the end of 2024.Analysts said the rally is being fuelled by rising geopolitical tensions, concerns over the US economy, and strong safe-haven demand.On the Multi Commodity Exchange (MCX), silver futures for December delivery soared by Rs 3,346, or 2.3 per cent, to an all-time high of Rs 1,49,138 per kilogram, while the March 2026 contract rose by Rs 3,160, or 2.14 per cent, to Rs 1,50,675 per kg. Year-to-date, silver futures have surged Rs 61,905, or 70.96 per cent, from Rs 87,233 per kg at the end of 2024.In global markets, spot silver climbed over 2 per cent to $49.07 per ounce, while Comex December futures hit $48.83 per ounce, reflecting robust international demand.“In global markets, gold is trading above USD 4,000-level, backing the narrative that investors are racing toward safe haven asset amid inflation, geopolitical jitters, and volatility in equities,” said Inderbir Singh Jolly, Chief Executive Officer at Wealth and Asset Management at PL Capital, PTI quoted.Net inflows into Indian gold ETFs, which reached $902 million in September, a 285 per cent increase from August, signal strong investor appetite for precious metals, analysts said.“Several Federal Reserve officials are scheduled to speak today, and the release of FOMC minutes may influence the US dollar and bullion trends further,” noted Saumil Gandhi, Senior Analyst at HDFC Securities.
Business
PM Modi Inaugurates Navi Mumbai International Airport – Parking For 350 Aircraft, Spread Over 2866 Acres And More
Mumbai: Prime Minister Narendra Modi inaugurated Phase 1 of Navi Mumbai International Airport (NMIA) on Wednesday, which will be one of India’s most modern and eco-friendly airports. A new greenfield airport, spread over 1,160 hectares, is being developed at a cost of Rs 19,650 crore. The domestic flight operations are expected to commence in the first week of December 2025, followed by international operations in further two months.
The work on one of the airport’s two runways has been completed. All terminals will be connected through an integrated system, providing improved passenger convenience. For passenger convenience, direct check-in at the metro station and baggage service will be provided through the ‘One-Up End-to-End Baggage Facility’ app.
With environmental protection in mind, the airport has placed special emphasis on green energy and water conservation. The terminal will showcase Indian culture through digital art, while artificial intelligence (AI) technology will be used in various operational processes.
To improve connectivity, a new road is being constructed from Atal Setu to Kosthal Road. Metro Line 8 will also be approved soon, connecting both Navi Mumbai and Mumbai airports. Additionally, a water taxi service will be launched soon.
The airport has parking facilities for 350 aircraft and separate taxiways for both runways. The entire project will be completed in four years. The opening of Navi Mumbai International Airport will significantly increase the air traffic capacity of the Mumbai Metropolitan Region and will emerge as a symbol of India’s progressive development.
According to the NMIA fact sheet, the airport will handle 90 million passengers per annum and the cargo of 3.25 million metric tonnes per annum after it is fully completed. The NMIA is spread over 1160 hectares (2866 acres). Phase one facilitates providing 20 million passengers per annum and 0.5 million metric tonnes of cargo capacity. The airport’s ownership is held by Navi Mumbai International Airport Ltd, comprising MIAL (74 per cent) and CIDCO (26 per cent). The Director General of Civil Aviation granted an Aerodrome Licence to NMIA on September 30.
NMIA and Chhatrapati Shivaji Maharaj International Airport together form a multi-airport system for the Mumbai Metropolitan Region, establishing an aviation hub with a combined ultimate passenger capacity of up to 150 million passengers per annum. NMIA will ease congestion and elevate Mumbai into the league of global multi-airport systems.
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