Sheen has returned to India's gold market ahead of festival and wedding season
By siliconindia | Monday, 14 August 2023, 21:19 IST
Gold demand is picking up in India. The country’s big retail jewellers said that with the festival and wedding season approaching, consumers have started purchases to gain from the nearly 6.5% drop in prices from the June quarter. After hovering around Rs 63,000/10 gm in the period till the end of June, the price of gold in India has dropped to below Rs 59,000/10 gm since the beginning of this month, pushing up demand in the world’s largest consumer of the yellow metal.
Experts’ views that gold prices in India may not drop significantly now have also aided this increase in demand.Gold traders in Mumbai's Zaveri Bazaar said demand has increased at the B2B and B2C levels from the first week of August.
The country’s big retail jewellers like Malabar Gold & Diamonds and JoyAlukkas said customers are pre-booking gold for the upcoming festival and wedding season. “The Zaveri Bazaar is humming with activity after the price fall,” said Surendra Mehta, national secretary of India Bullion & Jewellers Association. “Jewellers are purchasing gold to restock and the retail customers too are coming to purchase jewellery. The four-month-long lull has ended.”
Zaveri Bazaar is the country’s largest retail and wholesale market for jewellery. MP Ahammed, chairman of Malabar Gold & Diamonds, said the fall in gold price augurs well for demand revival, both at the trade and the retail level. “Apart from regular gold jewellery purchases, gold price fall presents a great opportunity for customers to pre-book jewellery at a lower price,” Ahammed said. “At the trade level, it has created a window to build stock ahead of the festive season. Overall, customer sentiment is good and we are witnessing an uptick in the footfall at our showrooms in India due to the gold price fall.”
Joy Alukkas, chairman of the retail jewellery chain Joyalukkas, said, “Customers are finding the current price level quite comfortable and they are placing orders for the upcoming wedding and festive season".India’s gold demand had dropped in the June quarter due to high prices, according to the World Gold Council.
“The demand for gold jewellery witnessed a decline of 8% y-o-y to 128.6 tonnes for Q2 2023,” said Somasundaram PR, regional CEO, India, World Gold Council. “This decline can be attributed to the prevailing record-high rupee gold prices, which significantly impacted affordability and consumer sentiment. There was a brief but notable impact on gold demand following the kneejerk reaction to the ban of 2,000-rupee notes during the quarter.”
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