Akshay Tritiya season off to a slow start due to volatile gold prices

This year’s Akshay Tritiya has been a late starter with customers sitting on the fence till the last minute on account of volatile gold prices. Said Ajoy Chawla, CEO, jewellery division, Titan: “We did a customer sentiment study which showed that the sentiment is strong but people are keeping their options open till the very end. There has been uncertainty over gold prices due to price correction to the tune of Rs 200 to Rs 250 per gram in the last 8 or 9 days. There could be further correction in the offing.” Currently gold prices are ruling at around Rs 7000 per gram.

There are several factors that have contributed to the slow start to the Akshay Tritiya season. First, the wedding season this summer has been a very short one. “There were a few dates end April and after that the next dates are in June end,” said Chawla. For north India, the dates come even later in the year. As a result, he added, the jewellery sales in Q1 have been slow.

What has also contributed to the trend is the staggered elections. “Movement of gold and cash is restricted till the voting is over in a state so this too has impacted offtake in states like UP, West Bengal, Andhra Pradesh and Telangana. “But there has been a more positive trend in Tamil Nadu and Karnataka where the elections are over,” said Chawla. However, despite all the head winds, the industry expects a “better than last year” Akshay Tritiya though the demand will see the maximum spurt towards the end the auspicious period, he added.

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