Strong festive season drives demand for gold fuelled by prices, online sales
demand for gold bars and coins remains strong during the festive season, partly fuelled by the rise in gold prices and expectations of further increases. This trend is further enhanced by sales across online marketplaces, making gold more accessible, according to a World Gold Council report released on Friday.
High prices coupled with an inauspicious period in the Hindu calendar for making purchases of valuable items from mid-September to early October, kept consumers away from jewellery buying. However, market reports indicate early signs of a resurgence in gold buying due to various ongoing festivals, with demand largely driven by wedding purchases. Retailers are actively implementing marketing campaigns to stimulate sales, said Kavita Chacko, Research Head, India of World Gold Council.
The surge in demand following the import duty cut, which coincided with some festivals, has been tempered by record-high prices. There is an expectation of increased demand from rural areas, driven by improvements in overall consumption. This year, favourable monsoons and higher crop sowing are anticipated to boost rural incomes, potentially leading to higher gold purchases.
Gold prices continued to rise in September, building on the strong gains from July and August, and reaching multiple new highs. By the end of
