Gold demand in India is expected to rise by 12% during this year's Dhanteras festival, despite high prices, according to Surendra Mehta, Secretary of the India Bullion and Jewellers Association (IBJA). Mehta attributed this anticipated increase to a fear of missing out (FOMO) among consumers, who are eager to purchase gold before prices climb further.
Average purchases are projected to be around 7-8 grams, costing approximately Rs 1.10 lakh. This reflects a significant buying interest even as gold prices remain elevated. Mehta noted that the combination of lower prices earlier in the year and rising demand is driving this trend.
Looking ahead, Mehta expressed uncertainty about short-term gold price movements due to fluctuating global economic and geopolitical conditions. However, he remains optimistic about long-term gains, predicting substantial price increases over the next year. Central bank buying and global risks are expected to support this positive outlook.