Gold Price Surge Casts a Shadow on Dhanteras Jewellery Demand

Indian jewellers anticipate a decrease in gold sales by volume during Dhanteras, despite a recent reduction in customs duty. Although gold prices are at an all-time high, retailers expect a revival in consumer demand driven by investment sentiment and upcoming wedding seasons.

As Dhanteras approaches, Indian jewellers are bracing for a decline in gold sales by volume, despite a reduction in customs duty that offered temporary relief. The steep escalation in gold prices has cast a shadow over this festive season's purchasing trends.

Gold is currently priced at an unprecedented Rs 80,000 per 10 grams, with silver surpassing Rs 1,00,000 per kg in the national capital. This has fueled concerns about muted demand among consumers, although some jewellers predict a compensation in value terms with increased spending and investment demand.

Experts suggest that geopolitical tensions and significant weddings post-Dhanteras could spur a recovery in demand. Despite high prices, gold remains an attractive safe-haven and investment option, providing hope for an eventual uptick in sales during Diwali and beyond.

(With inputs from agencies.)