Festive demand lifts up domestic gold sales

AHMEDABAD/KOCHI: Gold buying has picked up across India, the world’s biggest buyer of the metal, as Dhanteras and Diwali approach. Jewelers, post offices and banks are upbeat to see sales pick up.

The current price of Rs 31,150 for 10 gm is unlikely to deter consumers from making purchases during the festival season. “Jewellery sales are increasing and we expect to make up the shortfall of the past few months,” says Ved Prakash, director (marketing), MMTC.

The government-owned company expects jewellery sales to pick up by 10% compared to the previous year. However, bullion purchase remained slow with business likely to be down by 25-30%.

Consumers who have been adopting a wait-and-watch policy are now making purchases with festive and wedding season on the anvil. Across Gujarat and Maharashtra, gold buying began on Pushya Nakshtra – an auspicious day to invest in gold which fell on Tuesday.