People were reluctant to walk into jewellery stores on Monday because of the implementation of GST. Jewellery orders that were scheduled for July were advanced and people placed their orders before the month kicked in. This increased the sales by 50 per cent in June.

But the lack of footfalls on Monday pulled down the sales by 70% resulting in 1% decline in gold price, the lowest in the last month and a half.

Zaveri Bazaar experienced a lull on Monday as they were no buyers for new stock of gold jewellery. Gold dipped to as low as Rs 285 on Monday at Rs 28340 per 10 grams.

The case with silver is no better as the market closed with a decline to Rs 38660 a kg. The jewellers remain optimistic and are expecting the situation to normalize within a week.