Gold Prices To Remain High

Published on 18/10/10

Continuing robustness in gold prices, after having hit a record high last month, is unlikely to deter consumers as the festive seasons gradually picks up steam in eastern India. Industry members feel that the upsurge in sentiment will drive sales, although volumes might suffer.

The Durga Puja this week, will be followed up the auspicious gold buying period of 'Dhanteras' next month and then, the festival of Diwali. Subsequently, demand will be sustained on the back of the wedding period into the next calender year.

In value terms, this festive season could see double the growth witnessed last year, All India Gems and Jewellery Trade Federation vice-chairman Bachraj Bamalwa indicated.
“Despite gold prices this year being 15 per cent higher than last year, the sentiment in the market is good. We are expecting between 15-20 per cent growth over last year. In volume terms, there could be some growth, possibly about 5 per cent over last year,” Bamalwa said.

High prices, coupled with the slowdown, had led to only about 8-10 per cent growth in gold jewellery sales last year. But all that, seemingly, is set to change.