Usually, during the beginning of the festive season, cheers are brought to the yellow metal (gold) industry with a fall back in demand.
However, this year the case is not the same, as the price of the gold has hit over two year high.
Coinciding with the Hindu festivities of Navratra and Dusshera early this week, the yellow metal future recorded a high of Rs. 32,311, highest since 6th July 2016.
Accordingly, the demand in comparison to last year Dussehra has slipped by 40%, as per All India Gems & Jewellery Domestic Council’s (GJC) Chairman.
The Chairman of GJC further said that the rupee depreciation has an impact over rural purchases.
A total of over 66% of the demand in India comes from the rural area for yellow metal.
If prices are held at the current level then Diwali will also go lackluster, as per the view of bullion dealers.
Furthermore, it is to be noted that domestic gold prices are inclusive of 10% import tax.
Gold in 22-carat is priced at Rs. 31,000 per 10 gm while the purest form, 24-carat gold is valued for Rs. 33,160 in the domestic market.