Gold Prices Dip in India as Festive Season Approaches
Gold prices in India started the week on a lower note, with 24K gold falling ₹1,100 per 10 grams compared to Thursday’s rates. According to Goodreturns.in, 24K gold (99.9% purity) was priced at ₹14,918 per gram, while 22K (91.6% purity) was at ₹13,675 per gram, and 18K at ₹11,189 per gram. The decline was attributed to global market cues and fluctuations in the dollar-rupee exchange rate, with the Nifty 50 index trading around 22,505, up 0.37%, and the USDINR October futures near ₹96.47.
City-wise premiums remained consistent, with Delhi holding a ₹15 per gram premium over major cities like Mumbai, Kolkata, and Bangalore for 24K gold. Vadodara and Ahmedabad maintained a ₹5 per gram premium, while Chennai continued to have a distinct premium for 18K gold. The tables comparing rates from October 1 to October 5 showed a uniform decline across all major cities, with no change in the relative pricing between them.
Jewellery stocks saw mixed movements, with Kalyan Jewellers India leading the gains at 4.90%, followed by Titan Company at 1.46%. Thangamayil Jewellery and PC Jeweller were among the laggards, with the latter experiencing heavy turnover. Analysts noted that Kalyan Jewellers’ strong performance suggested stock-specific interest rather than a broader sector rally.
As the festive season approaches, jewellers anticipate that the dip in gold prices could boost sales ahead of Dhanteras and Diwali. Investors looking for alternatives to physical gold were advised to consider gold ETFs, which track gold prices without the need for physical ownership.