Gold Prices Drop but Buyers Wait for Further Dips Ahead of Diwali

Gold prices in Pune have dropped by nearly Rs8,000 per 10 grams over the past month, but buyers are adopting a cautious approach despite the festive season nearing. Currently, gold is trading at Rs1.47 lakh per 10 grams without GST, down from Rs1.55 lakh in early September. However, prices remain significantly higher than last year’s Rs1.15 lakh per 10 grams. Nidhi Sengupta, a resident of Wanowrie, mentioned that while the price drop is notable, it is still far from the more affordable rates seen earlier. She and others are waiting for further declines before making large purchases, such as those for upcoming weddings.

Jewellers report a slow but steady return of buyers, with a preference for smaller purchases like coins, bars, and digital gold. Renisha Chainani, chief research officer at Augmont, noted that many had avoided buying when prices were at record highs, but the recent correction is attracting more interest. Lightweight jewellery and lab-grown diamonds are also gaining popularity as consumers opt for more affordable options.

Abhinav Jain, a city-based jeweller, highlighted the cautious sentiment among buyers, with many avoiding large purchases. However, Supriya Kataria of Kumari Fine Jewellery observed that deferred purchases are now being revived, particularly for festive and occasion-led jewellery. Mehul Jain, founder of Ekaraa Jewellery, expects buying activity to strengthen further as Diwali approaches, with enquiries picking up for lighter, everyday pieces and gifting.