Rising gold prices to hamper festival demand for jewellery
The sharp rise in gold prices on the back of the raging war between Israel and Hamas is set to hit jewellery sales during the upcoming peak festival season of Dhanteras and Diwali.
Gold prices have jumped three per cent, or by ₹1,819 per 10 gram, to ₹58,396 on Friday from ₹56,577 on October 3, according to Indian Bullion and Jewellers Association data.
On MCX, gold for December delivery was up ₹687 per 10 gram, or two per cent, at ₹58,605 on Friday.
Irrespective of prices, it has been a tradition for consumers to buy gold during Dhanteras and Diwali, and we believe that this will continue. The focus will be more on diamond jewellery as diamond prices have come down in recent months,
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In fact, gold prices have reversed its bearish trend for most of the last month after the outbreak of geopolitical tension and worries over the US economy. The fall in yellow metal prices last month had boosted consumer sentiments closer to the peak festival and wedding seasons.