Gold looks up, traders see further gains
Just a day before the peak festive season starts, jewellers are witnessing a healthy demand for gold and expect that the demand could be up by around 20% till December this year, compared to last year. Sachin Dave reports.business Updated: Oct 24, 2012 02:06 IST
Just a day before the peak festive season starts, jewellers are witnessing a healthy demand for gold and expect that the demand could be up by around 20% till December this year, compared to last year.
“We are expecting a jump of around 20% starting this Dussehra till the year end. In the past two days, there is already a healthy jump in gold jewellery and gold coin demand,” said Kishor Zaveri, a South Mumbai jeweller.
Industry experts say there could be 20% gain in volume terms by the year-end.Industry experts say that buyers are returning as the prices of gold have corrected due to the stronger rupee.
“Physical demand of the yellow metal has seen a substantial increase and is expected to be the same way till the year-end. The price may see an increase within next three months,” said Hitesh Jain, commodity analyst at IIFL. The gold price on Tuesday for the December futures was Rs. 31,068 per 10 gram. According to the industry experts around 40% to 50% of the total gold sold in a year, in volume terms, is sold in the last quarter due to the festive and marriage season.
“After slow growth in the first two quarters of the calendar year, sales have improved from the third quarter onwards. Onset of the wedding and festive season is one of the main reasons behind this increase and this is one the most fruitful times of the year for all jewellers,” said Jitender Jain director, KGK group, a gems and jewellery company.