High gold prices keep Dhanteras buying moderate

NAGPUR: Dhanteras gold buying remained moderate this year due to high rates, said trade sources. Riding on a stronger dollar and other

international

factors, prices of the yellow metal have crossed Rs32,000 a tola (10 grams). The retail outlets in the city quoted a price of Rs32,625 on Monday.

Sources in the trade said the sentiment remained bearish till 3-4 days before the festival, though customers turned up at the last moment to buy the precious metal, keeping the Dhanteras tradition. This has helped maintain year-on-year growth.

If compared to last year, gold prices are up by more than Rs1,000 a tola. Sources said that price may be one of the factors for moderate sales.

Nilesh Rathi of SMS Bhav, a bullion rate information agency, said as per inputs from markets across the region, there was not much enthusiasm at a number of centres. This may be mainly due to the higher rates.

Though rates have touched the current level earlier, this is the second Dhanteras under GST regime. As per the new system, gold is taxed at 3% which was 1% earlier, he said.

Nitin Khandelwal, a director of Gems and Jewellery Federation (GJF), said even as hopes were low earlier, sales finally picked up in a day. Given the overall situation, the consumers are once again finding gold to be a safe investment, he said.

Ravikant Harde of the Nagpur Sarafa Merchants Association said sales are up by 20% as compared to the last year, which is a decent growth.

BC Bhartia, president of Confederation of All India Traders (CAIT), said generally the yellow metal rates increase as Dhanteras approaches. However, this year the rates have come down in the last 2-3 days, which indicates a bearish trend.