Published
Oct 9, 2019
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Gold retailers have low expectations this Dhanteras

Published
Oct 9, 2019

The gold jewellery industry expects demand to remain low this upcoming Dhanteras festival due to a rise in gold prices and and drop in domestic demand. 


Gold demand this Dhanteras is expected to be low - GJEPC- Facebook


"On Dhanteras, the gold sales touch around 40 tonnes every year,” the India Bullion and Jewellers Association’s national secretary Surendra Mehta told Indo-Asian News Service. “However, the weak demand may decrease the sales by 50% this year."

"There are three types of gold demand: wedding demand, festive season demand and regular demand,” said Mehta. “The regular demand is already low due to the liquidity crisis in the market. Besides, buyers are avoiding to invest in gold much an account of higher prices… Moreover, the gold demand will continue to remain low this festive season.”

Gold prices have, however, come down a little from their high last month. On October 9, 22 carat gold was at Rs 3,760 ($52.89) per 10 grams, the same rate as the day before. 

The country is experiencing a cross-market economic slowdown which could contribute to fewer sales on Dhanteras on October 25. If gold prices do go down, the demand may pick up slightly but the overall sentiment is less than optimistic. Gold imports are down due in part to an increase in import duty and gold prices have also risen on the international market. 

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