Gold buyers rush to lock prices as festive bookings begin early

Kolkata: Gold buyers have started booking jewellery for the upcoming festive and wedding season nearly six weeks earlier than usual, taking advantage of the sharp correction in prices from January’s record highs amid expectations that bullion could rebound if geopolitical tensions ease.

Advance bookings have picked up over the past fortnight as gold prices have stabilised at around Rs 1.4 lakh per 10 grams, down from nearly Rs 1.7 lakh per 10 grams in January, said jewellers across the country.

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US President Donald Trump’s signals on reviving peace talks with Iran have reinforced expectations that prices could move higher once geopolitical uncertainty subsides, prompting consumers to lock in current rates.

“Advance bookings are already up 30% compared with last year, and we expect the momentum to continue,” said B. Govindan, chairman of Bhima Jewellery. “Customers are taking advantage of the current price levels ahead of the festive and wedding season.”

Traditionally, advance booking gathers pace around Ganesh Chaturthi, which falls on September 14 this year, but the trend has started almost a month and a half earlier as buyers seek protection against a possible rise in prices, jewellers said.

“Over the last fortnight, it has become increasingly apparent that there could be a truce between the US and Iran,” said Surendra Mehta, national secretary of the India Bullion and Jewellers Association. “Once a truce is reached, gold prices are likely to move up. We have seen similar price movements over the last five months, which is encouraging consumers to book now.”

Suvankar Sen, managing director of listed jewellery retailer Senco Gold, said advance bookings accelerated over the past ten days, particularly in eastern and northern India. “Gold prices are largely stable now, hovering between Rs 1.4 lakh and Rs 1.42 lakh per 10 grams, which is significantly lower than the January peak. Customers are taking advantage of this window before prices move up again,” he said.

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The renewed buying interest comes even as international gold prices recovered sharply on Monday, climbing above $4,100 an ounce after Trump said peace talks with Iran would resume following diplomatic efforts by key Middle Eastern allies. The prospect of renewed negotiations eased fears of prolonged disruption to oil supplies and inflation, improving sentiment across financial markets.

In the Mumbai spot market gold traded at Rs 1.42 lakh per 10 gm on Monday.

The diplomatic push follows a volatile week in West Asia. A brief pause in hostilities ended after Iran launched ballistic missiles at a US military base in Jordan, prompting fresh US airstrikes on multiple Iranian military targets. Despite the renewed military action, markets have responded positively to indications that both sides could return to the negotiating table, said Renisha Chainani, head of research at Augmont Gold.

With the festive season approaching and geopolitical developments keeping bullion prices volatile, jewellers expect advance bookings to remain strong in the coming weeks as consumers seek to secure current prices before any fresh rally.