Gold price failed to sizzle on Dhanteras, 17th October. Trade pundits that Sify spoke to suggested that the weakness was owing to a global sentiment, that has been running weak.
On Tuesday, Praveen Shankar Pandya, the Chairman at Gems and Jewellery Export Promotion Council agreed that there was indeed a slowdown in sales and customer footfalls. "Compared to last year, there has been a slowdown this year. It's not just on exports side but also on the domestic end," he added.
Sify verified with other associations and individual jewellers who confirmed a slack Dhanteras. And most of them confirmed of weak footfalls.
But most if not all, also agreed that the trend was a better one from Dussehra sales. With wedding season soon to follow after Diwali, there is hope that demand for the yellow metal will rise.
For the recod, the Sify Gold price tracker showed price dips for price in Chennai, Mumbai, Bangalore, Hyderabad, as well as the Gulf. Rates in Delhi, Kolkata and Kerala remained more or less the same. The price change remained marginal for price for 10 grams of both 22 and 24 karat gold varieties.
But it certainly doesnt mean that a marginal price revision should bother you. In fact, Gold price is expected to only improve in the coming two months.
Mukesh Mehta, a Gold-trend spotter, and also the National President of the India Bullion Jewellers Association suggested that even if the current trend is negative compared to the previous year, "the gold-buying trend is building for the wedding season in November and December."
He said, "Footfalls to abhi just start hua hai (have just started). It will increase in the days upto Diwali, and then right upto the marriage season."
A 30% drop in Dhanteras was what an Economic Times report suggested. Media outlets, including Sify had also suggested that factors such as demonetisation, GST, RERA, and in some cases customers buying other commodities such as electronics, could be reasons for a slack gold purchase. But, "most issues including the mandatory PAN/Aadhar linkage have been resolved over," shared Pandya.
So, if you are thinking on buying Gold, this week, especially during Laxmi-Puja, prices do look attractive for a buy.
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