Jewellers expect gold demand to grow this Dusshera, Diwali

MUMBAI: Jewellers and bullion dealers expect demand to pick up in the run up to the festivals of Dusshera and Diwali next month as Shradh, the inauspicious period when Hindus usually avoid purchasing gold and other items, has ended.

Meanwhile, overseas gold price, which influences the local rate, on Thursday continued its slide towards $1,200 an ounce and giving up its entire gains in 2014.

The MCX front-month contract, which approximates the local spot gold price, traded down two-fifths of a percent at Rs 26,438 per 10 gms in early noon trades. The lowest the contract closed at since its launch in March was Rs 25,602, on June 2.

"We expect growth in (sales) the festival season of Dusshera and Diwali this year to be satisfactory over the last year," said CK Venkataraman, chief executive of Titan Industries’ jewellery business.