In a usual case the onset of festive season brings cheer to the gold industry with a pull back in demand, this year the case is not so as price of the yellow metal has hit over 2 year high. Early in this week that coincided with Hindu festivities of Navratra and Dusshera, gold futures hit a high of Rs. 32,311, highest since July 6, 2016.

Consequently, the demand as per the Chairman of All India Gems & Jewellery Domestic Council in comparison to last year Dusshera has fallen by 40% in some of the pockets. Further he is quoted as saying in a Reuters report that rupee depreciation and scanty rainfall casts its impact over rural purchases.

Much of demand in India for the yellow metal comes from rural areas, amounting to as much as 66%. But this time scant in rainfall of 9% dented produce of some of the major crops and likewise farmers' income got impacted.

And bullion dealers hold the view that if prices are held at the current level then Diwali will also go lacklusture. So, to woo customers amid significant price hike, jewelers have been offering impressive discounts of as much as $7 per ounce. It is to be noted that domestic gold prices are inclusive of 10% import tax.

In the domestic market, gold in 22 k is priced at Rs. 31,000 per 10 gm while the purest form in 24 k is retailing for Rs. 33,160

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