Gold Prices Soar 60%, Gold Sales Plummet During Ganesh Chaturthi Festivities
Gold prices in India have surged by 60% over the past year, reaching Rs 1.57 lakh per 10 grams in Mumbai's spot market as of Monday.
This sharp increase has led to a decline in gold sales during the Ganesh Chaturthi festivities, with consumers either reducing their purchases or opting for lighter jewellery due to higher prices.
Surendra Mehta, national secretary of the India Bullion & Jewellers Association, stated that domestic gold prices have remained at historic highs, impacting volume sales. However, he remains optimistic that demand will pick up as the festive calendar progresses towards the peak wedding season.
Wedding-related demand has remained relatively resilient, while physical investment demand has stayed steady. There is also growing interest among younger consumers in purchasing jewellery for personal milestones, with women increasingly buying jewellery to celebrate festivals and other events.