On Dhanteras, gold edges higher but silver falls; rise in sales expected due to festivities
As Diwali festivities commenced with Dhanteras on Friday, gold prices witnessed a rise even as silver prices registered a fall. On MCX, while gold futures rose 0.07% to Rs 50,635 per 10 gram, silver rates dropped 0.2% to Rs 62,615 per kilogram. In the previous session, gold prices had risen 0.76% or Rs 380 per 10 gram, while silver had risen 0.28%.
With the commencement of Diwali festivities, analysts expect rise in sales this week. The expectation is also because gold prices have significantly corrected from record-high level of Rs 56,000, in August.
Dhanteras, which is the first day of the five-day Diwali festival, is marked by purchasing of gold and utensils.
“The footfalls are better and people are interested. Though sales are recovering, it won’t be as good as last year during the same period,” Somasundaram PR, World Gold Council (WGC) Managing Director (MD) was quoted as saying by news agency Press Trust of India.
Anantha Padmanabhan, chairman, All India Gem and Jewellery Domestic Council, told PTI that with Dhanteras overlapping on two days, the industry expected maximum traction across the country. “We expect the pent-up demand to translate into sales,” he said.
Meanwhile, in the international market, gold prices have remained steady. While spot gold was steady at $1,876.92 per ounce, it was down 3.8% for the week; this was also its worst weekly performance since late-September. A strong US dollar was among the factors that hurt gold prices this week. The dollar index was steady but also on course for a 0.7% weekly gain.
Among other precious metals, silver rose 0.1% to $24.26 per ounce. Platinum, on the other hand, was steady at $879.26.
(With agency inputs)