In the wake of liquidity crisis and high interest rate as last year the demand for gold this season is unlikely to gain ground. The demand for gold weakened by 30% last year in comparison to the earlier year. And this sentiment is likely to continue at the most or there shall be further de-growth in the demand for yellow precious metal.
In a span of quiet some years, gold has lost its sheen the most last year due to severe internal factors of GST implementation and note ban plus stringent KYC rules. As per the inputs given to PTI by All India Gem & Jewellery Domestic Council (GJC) chairman Nitin Khandelwal, sales this year will see a decline by 5-10% or at best to be at par.
Also, gold's resurgence in price due to a host a factors such as rupee's stabilization, volatile equities is also not being a big booster for the gold right away. Also other lucrative investment options with better pricing such as mutual funds are not diverting the investments to gold.
Last year on the occasion of Dhanteras, considered to be auspicious for the purpose of gold and other valuables buying, gold was priced at more than Rs. 30,000 per 10 gms.
In the domestic markets, gold has been retailing at Rs. 32,550 per 10 gm of gold on Saturday.
Nonetheless, organized players in the gold jewellery industry are positive and expect steady growth this year too on the back of customer's confidence of getting a better re-sale value at these outlets as well as an array of offers provided by these players.