Gold prices have hit a record high of INR 79,000 per 10 gm, but demand is expected to stay strong this Diwali and through the wedding season, says the World Gold Council.
Gold prices reach record high of INR 79,000 per 10 gm
According to Economic Times, Sachin Jain, Regional CEO, India, World Gold Council commented, “Buying gold is considered auspicious during Dhanteras, Diwali. From gold jewellery to gold bars, gold coins consumers plan at least a token purchase as a matter of tradition as gold buying is generally believed to herald good fortune, wealth and prosperity and that is visible in the sharp rise in gold buying historically witnessed on this day.
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“Despite gold prices touching record highs of INR 79,000 per 10 gm, anecdotal feedback from Industry indicates a resurgence in gold buying due to various ongoing festivals, with demand largely driven by investment sentiment and wedding-related purchases,” he added.
Further citing demand from rural areas, he stated, “The retailers have also invested in new designs and innovative usage of technology to make daily wear, lighter jewellery considering heightened gold prices, to invite consumers to come into the stores. There is also an expectation of increased demand from rural areas, driven by improvements in robust economy and consumption. Good monsoons and higher crop sowing this year are anticipated to boost rural incomes further, potentially leading to higher gold purchases.”
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Diamond Jewellery boom expected in tier 2 and 3 cities
“Investment demand including digital gold, gold ETFs, gold bars and coins remains strong, with purchases also emerging from new channels such as e-commerce and Q-commerce. Overall, we are expecting gold demand uptick to continue this Diwali and till end of the year due to the wedding season,” the WGC India head explained.
Meanwhile, Amit Pratihari, managing director of De Beers Forevermark, said diamond-studded jewellery is also expected to do well. “As the festive season approaches, natural diamonds have emerged as the preferred choice for consumers. Demand for diamond jewellery is strong, driven by its emotional and symbolic meaning, with aspirations growing even in tier 2 and 3 cities where people are choosing diamonds for both special occasions and everyday wear,” he said.
He added that the wedding season, along with the festivities, has boosted consumer sentiment, and demand is expected to continue into the new year.
