LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » India News

Festival demand for gold dims as price rally bites

Demand in India, the second biggest gold consumer after China, usually strengthens towards the end of the year during the traditional wedding season and major festivals including Diwali and Dusherra, when bullion buying is considered auspicious. 

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Festival demand for gold dims as price rally bites
In the Indian market, gold futures hit the highest since July 6, 2016, at 32,311 rupees, earlier this week. Reuters
Written By: Reuters
Updated: Fri, Oct 19, 2018
06:31 pm
Reuters
RELATED NEWS
Gold price today and much more: Consolidation likely in Rs 45200- Rs 46200 levels - Latest updates by ICICI Securities Gold price today and much more: Consolidation likely in Rs 45200- Rs 46200 levels - Latest updates by ICICI Securities
Gold Price Today 3-03-2021 –Gold cheaper by Rs 4600 in 2021, Silver by Rs 766; time to buy gold NOW expert says Gold Price Today 3-03-2021 –Gold cheaper by Rs 4600 in 2021, Silver by Rs 766; time to buy gold NOW expert says
Why Gold prices have got low and is it expected to fall lower? Should people be looking to invest in it? Why Gold prices have got low and is it expected to fall lower? Should people be looking to invest in it?
Sovereign Gold Bonds: 11 golden reasons to invest in SGBs today | Sharekhan analysis Sovereign Gold Bonds: 11 golden reasons to invest in SGBs today | Sharekhan analysis
Gold Outlook I Details explained by ICICI Securities Gold Outlook I Details explained by ICICI Securities

MUMBAI/BENGALURU: A key festival brought little activity to the physical gold market in India this week as purchases remained significantly lower than normal with domestic prices jumping to the highest in more than two years.

Demand in India, the second biggest gold consumer after China, usually strengthens towards the end of the year during the traditional wedding season and major festivals including Diwali and Dusherra, when bullion buying is considered auspicious. 

"Demand was better than last week but if we compare with last year`s Dusherra, it was as much as 40 percent lower in some pockets," Nitin Khandelwal, the chairman of All India Gems & Jewellery Domestic Council, told Reuters.

A rally in local prices due to a depreciating rupee and scant monsoon rains hurt rural purchases, he said. 

In the Indian market, gold futures hit the highest since July 6, 2016, at 32,311 rupees, earlier this week.

Two-thirds of India`s gold demand comes from rural areas, where jewellery is a traditional store of wealth. This year, monsoon rainfall was 9 percent below average, denting output of key crops and thereby farmers` incomes. 

"Jewellers were disappointed with Dusherra demand. If prices remain at the current level, then Diwali demand will also be subdued," said a Mumbai-based jeweller with a private bullion importing bank.

Dealers offered discounts of up to $7 an ounce over official domestic prices this week, the highest since mid-June, compared with the $6 discounts last week. The domestic price includes a 10 percent import tax.

Meanwhile, demand was moderate in other major Asian centres with global benchmark prices on track for a third week of gains.

Premiums in China eased to $4-$7 per ounce versus $4.50-$8 last week. 

"Physical demand has been steady this week in China and Hong Kong. Demand, especially for jewellery, should increase over the coming months ahead of the festive season," said Peter Fung, head of dealing at Wing Fung Precious Metals in Hong Kong.

Premiums in Hong Kong were around 70 cents-$1.50 against $1-$1.50 previously.

Watch This Zee Business Video

"Dealers across Asia report increased volumes in sales of scrap gold, as sellers are taking advantage of the appreciation in gold price," said Joshua Rotbart, managing partner at J. Rotbart & Co in Hong Kong.

In Singapore, dealers charged premiums of 60 cents to $1.20 over the benchmark, against 80 cents-$1.20 previously.

"We saw some buying on dips in gold prices, especially from jewellers ahead of the Indian festival Diwali," said Brian Lan, managing director at Singapore dealer GoldSilver Central.

In Japan, prices remained on par with the benchmark, a Tokyo-based trader said.

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
goldMarketsDiwali
RELATED NEWS
Gold price today and much more: Consolidation likely in Rs 45200- Rs 46200 levels - Latest updates by ICICI Securities Gold price today and much more: Consolidation likely in Rs 45200- Rs 46200 levels - Latest updates by ICICI Securities
Gold Price Today 3-03-2021 –Gold cheaper by Rs 4600 in 2021, Silver by Rs 766; time to buy gold NOW expert says Gold Price Today 3-03-2021 –Gold cheaper by Rs 4600 in 2021, Silver by Rs 766; time to buy gold NOW expert says
Why Gold prices have got low and is it expected to fall lower? Should people be looking to invest in it? Why Gold prices have got low and is it expected to fall lower? Should people be looking to invest in it?
Sovereign Gold Bonds: 11 golden reasons to invest in SGBs today | Sharekhan analysis Sovereign Gold Bonds: 11 golden reasons to invest in SGBs today | Sharekhan analysis
Gold Outlook I Details explained by ICICI Securities Gold Outlook I Details explained by ICICI Securities

LATEST NEWS

Ayodhya airport to become functional in early 2022

PayPal plans to hire over 1K engineers in India

Gold Price Today 3-03-2021 –Gold cheaper by Rs 4600 in 2021, Silver by Rs 766; time to buy gold NOW expert says

Hurun Global Rich List 2021: These Indians are in billionaires' club - Check names, rankings

Bajaj Auto will launch Innovative Financing Schemes in March & April: Rakesh Sharma, ED

HC asks Amazon to take down film over actor's defamation case

Delhi municipal bypolls: AAP wins 4 wards, Congress 1

PAN Aadhaar Link: Last date is fast approaching! Failing to do this may lead to Rs 10,000 penalty

EPFO members alert! Some say National Pension System is better than EPF, VPF; know what NPS calculator says

MCD by election 2021: FINAL RESULT of Delhi municipal bypolls! Full list of Kalyanpuri, Rohin-C, Trilokpuri, Shalimar Bagh North wards, seats - AAP vs BJP vs Congress

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved