Gold prices rise to record heights ahead of festive season

By

Isabelle Crossley

Published
Aug 28, 2019

Prices of gold in India have shot up and passed the benchmark of Rs 40,000 per 10 grams ahead of the upcoming festive and wedding season. 

Gold prices rose above Rs 40,000 per 10 grams on August 27. This was a local first, ET Bureau reported, citing a decrease in the rupee’s value and a lack of growth on the global market. Silver prices have also recently risen to a three year high. 

As the wedding and festive season approaches and gold demand in India is expected to rise, prices could also continue to rise. The CMD of Kolkata-based business Senco Gold, Shankar Sen, told ET Bureau that gold “could hit Rs 43,000- 44,000 per 10 gm by October, when Indian demand tends to revive after a slack season.”

India, which relies heavily on imports for its gold jewellery industry, saw imports increase by 35.5% in the first quarter of the 2020 financial year ending June, compared to the same time period a year ago. This pushed up the country’s trade deficit. India is the world’s largest gold importer but the central government is trying to reduce India’s imports across all sectors to reduce its total trade deficit.