Islamabad, Nov 2: Due to record-high prices, gold demand in India increased this week as a result of festival spending, however volumes were lower than normal.
Because people wanted to acquire things at the auspicious time, retail sales increased. However, because of the higher pricing, people were purchasing tokens,” a jeweler from Hyderabad stated.
Earlier this week, prices in India surged to a record high of 79,775 rupees per 10 kilos, representing a nearly 33% increase from Diwali last year.
According to a jeweler in New Delhi, the proportion of coins and bars in overall sales rose this year more than usual because consumers were unwilling to pay higher production costs for jewelry.
Indian dealers gave a discount of up to $5 later in the week, compared to last week’s $4 reduction, although earlier this week they charged up to $1 an ounce more than official domestic rates on Dhanteras, including 6% import and 3% sales duties.
“In volumes, sales were lower this year than last year. However, considering the price rally, even sales with modest volume drops look promising since, in value terms, they are much higher,” said a Mumbai-based bullion dealer with a private bank.
Diwali and Dhanteras, celebrated this week, are festivals when buying gold is considered auspicious.
