Sales were down as prices of both gold and silver have sharply increased from over last Dhanteras.
Kolkata | Mumbai: Dhanteras this year failed to bring the shine back on the gold trade that has seen tepid sales since July. High price of gold, coupled with a muted market sentiment, has pulled down Dhanteras demand a fifth from last year. Lightweight gold and diamond jewellery has become popular this Dhanteras.
Domestic price on Friday was hovering around Rs 39,917 per 10 gm, close to Rs 40,000 mark, while internationally the precious metal touched $1500 per troy ounce. Fears of weak US economic data fuelled expectations of another Fed rate cut, impacting gold prices. Gold prices have gone up by 21% since last Dhanteras on November 5.
Surendra Mehta, national secretary, India Bullion & Jewellers Association said that they were expecting Dhanteras sales to drop by 40% this year. “But sales have picked up a bit and that is why we are expecting demand to be down by 20% now,” he said.
Suvankar Sen, executive director, Senco Gold & Diamond, said sales have picked from last weekend but unlike previous years, it was likely to remain muted due to surge in the gold prices and current slowdown.
“As the purchasing power has come down, we can see 10%-15% degrowth in sales quantity. However, in terms of sales valuation, it may remain same as that of last year as the gold prices are high,” Sen said.
Jewellers said that lightweight jewellery with contemporary designs for men and women in gold and platinum are some of the biggest trends of this festive season.
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