Gold prices rally Rs 220 on Dhanteras

Dhanteras, which is being celebrated in northern and western parts of India on Friday, is considered an auspicious day for buying gold, silver and other valuables.
For representational purposes.  (File photo | Reuters)
For representational purposes. (File photo | Reuters)

NEW DELHI:  Notwithstanding the ongoing economic slowdown, attractive offers and discounts ahead of Diwali seems to have added sheen to the yellow metal with jewellers witnessing robust footfall on the occasion of Dhanteras. 

Even as soaring gold prices acts as a headwind, jewellers say they are confident of posting higher volumes during the last quarter amid a boost in buying sentiment and a relatively longer wedding season this year.

“We have seen a 30-40 per cent surge in demand of jewellery ahead of Diwali as compared to the previous months, with lightweight and diamond jewellery being the flavour of the season,” said Suvankar Sen, executive director, Senco Gold and Diamonds. Sales, however, is down 10 per cent year-on-year, which we expect to shore up in coming days, he added.

An overall consumer sentiment, underpinned by a life-time high gold prices in rupee terms, has been reported across regions. A gram (22 carat) gold on October 25 last year was Rs 3,269 went on to touch a new high of Rs 3,953 on September 19 and dropped to Rs 3,722 on October 1 but further rose to Rs 3,924 in New Delhi on Friday. Retailers, meanwhile, are wooing customers with deep discounts.

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