Gold prices end slump thanks to rural demand
today Apr 16, 2019
Indian gold prices finally rose by Rs 170 ($2.44) to reach Rs 32,790 for 10 grams on April 16 after four days of declining prices. The price increase was due to demand from local jewellers.
Gold prices in New Delhi made a big comeback on Tuesday, the All India Sarafa Association reported to the Press Trust of India. Prices had been declining by Rs 450 for four days prior causing some concern but Tuesday brought good news.
Demand from local jeweller businesses has picked up for the spring wedding season. Rural demand for gold was expected to rise ahead of the Hindu and Jain spring festival of Akshaya Tritiya that will take place on May 7 this year. This was due to government subsidies for farmers giving them increased disposable income this year which, as gold is a main way of investing in rural areas, was expected to drive up gold jewellery sales. Tuesday’s results give credence to these predictions. However, although local demand rose, overseas demand remained low.
Silver prices also rose on Tuesday and gained Rs 250 to reach Rs 38,350 per kilogram. The rise was attributed by the PTI to increased off-take by industrial units and coin makers. Weekly-based silver delivery also rose by Rs 334 to Rs 37,322 per kilogram.
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