Gold gets big festive boost: Prices rise as jewellers buy heavily to meet season demand

By: | Published: October 18, 2018 4:29 PM

Gold prices got a fillip on Thursday, even as prices rose amid the ongoing festive season. Gold prices increased by Rs 195 to Rs 32,225 per 10 grams on Thursday on the back of increased buying by local jewellers to meet festive season demand.

Gold prices increased by Rs 195 to Rs 32,225 per 10 grams on Thursday.

Gold prices got a fillip on Thursday, even as prices rose amid the ongoing festive season. Gold prices increased by Rs 195 to Rs 32,225 per 10 grams on Thursday on the back of increased buying by local jewellers to meet festive season demand. Interestingly, following the yellow metal’s rise, silver prices too rose, recovering by Rs 20 to Rs 39,500 per kg, owing to  due to increased offtake from industrial units and coin makers.

The rise in gold prices is attributable to increased buying by local jewellers, driven by ongoing festive season, PTI reported traders as saying. Besides, weakness in the rupee, making imports costlier, also fuelled the upward trend in gold prices, noted the agency report.

Prices of the yellow metal had declined by Rs 150 to Rs 32,030 per 10 grams yesterday. In the national capital Delhi, gold of 99.9% and 99.5% purity rose further by Rs 195 each to Rs 32,225 and Rs 32,075 per 10 grams, respectively.

According to a Bloomberg report, gold buyers in India may not throng jewelry stores as before, in the run-up to Diwali this year, as gold prices have surged to highest level in more than two years. The rise is gold prices is on the back of a weakening rupee. “Demand is very low this year,” Nitin Khandelwal, chairman of the All India Gem & Jewellery Domestic Council told Bloomberg, adding that there could be a spurt in purchases around Diwali “as no marriages can happen without jewellery.” According to a World Gold Council report, the last quarter of the year is the season of peak demand, with Indians buying almost 240 metric tons on average in the past four years. 

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