Gold dealers in major gold buying destinations seem to be in a good mood with most of them considering discounts and freebies to lure customers. Various news reports have confirmed this trend. Discounts in the past two months have been more or less in the range of $3-7 per ounce. This in spite of Akshaya Tritiya, the Indian festival of buying Gold around the corner.
Dealers introduced offers even in the Gulf.
For instance, Joy Alukkas was offering a chance to win up to 200 gold bars through a raffle draw. The Muscat based branch of Joy Alukkas was offering a special rates on jewelry sets, 1 gram gold coins free on purchase of Diamond, and other jewelries too. There was also a zero per cent deduction on gold exchange, besides customers being offered the option of paying a ten per cent advance and the remainder later to book Gold at lowest rates up to April 18.
Malabar Gold, another Indian jeweller popular in the Gulf, was also offering a scheme where customers could pre-book Gold and get free silver equivalent to the weight of their Gold purchase.
Although customers in India are yet to be offered such raffle programs, there were plenty of dealers offering schemes where the making charges were waived. Some offered a free gold coin on purchase of gold above a certain value. Then there have been added benefits such as gift cards or loyalty programs too. The deal on Paytm offers a cashback of Rs 500 off on flight ticket bookings on purchase of MMTC-PAMP certified bullion.
Although such offers are in plenty, but it should come as a shock to you that most spot dealers and economists have been talking of Gold slumping below a particular level that it held for the past several months. If what the spot dealers fear were to happen, the price of Gold could crash and thereby reduce your spendings on Gold this Akshaya Tritiya.
Only last week, the Gold price crashed by Rs 650 per ten grams. Back then, markets in Japan, China and Singapore witnessed selling pressures. So, if there is no demand for Gold and dealers have been struggling to hold onto customers, and Gold is projected to dip further in valuations, what explains it holding current levels?
Well, the strengthening of the US dollar in the last week after the US presented a strong economic data, coupled with fears of trade war have resulted in a volatile situation in international markets. This situation has led many investors to shift their savings to Gold.
Last week the US President re-ignited tariff related talks. On Thursday, Washington and Beijing claimed a willingness to clear differences and negotiate a resolution amicably. But on Friday, Trump again threatened to slap additional barriers on China. He called for a new $100 billion tariff based imposition on China. Trump's comments were followed with spot gold price rising 0.3% to $1,330.18 per ounce as of early morning 7:00 AM on Friday. U.S. gold futures too rose 0.4% to $1,333.50 per ounce.
Most bullion traders on the global markets suggested that the US non-farm payroll and wage data was likely to push gold prices lower. But the fears of a trade war were yet to subside and that may keep the prices under check. With the dollar rising and a simultaneous pressure coming from trade-wars, Gold is likely to sustain in the range of $1315 levels and prices of jewellery in India would more or less hold.
On the domestic front, there are discounts and freebies expected, but any changes in Gold rates would depend on Trump and his talks with China. An assuaging statement from Trump could bring gold rates down from you on Akshaya Tritiya. But then again, knowing the man don't expect too much.
Meanwhile, check our app and the index of tables to get a perfect estimate of the price of Gold in your city.
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