Jewellery sales recover after a lull of two months as gold prices soften

Overall momentum is expected to continue, according to experts, as gold prices are likely to fall further in the first week of July

Gold jewellery sales have seen a spurt after a lull of two months as prices of the precious metal have softened to about Rs 58,300 per 10 grams from Rs 61,000 per 10 grams in the past month, said leading jewellers.

April and May proved to be lacklustre months for jewellers as gold prices surged past Rs 62,000 per 10 grams, but with the easing of gold prices, customers have returned to the market, said industry executives.

HEAVY FOOTFALLS AHEAD OF WEDDING SEASON

“The wedding season in South India, the largest consumer of gold in the country, begins on July 15 and continues till August 10, and all jewellers are witnessing robust footfalls as prices have fallen,” said Joy Alukkas, Chairman of the Joy Alukkas group.

GOLD MANUFACTURING HUBS GET BUSY

Along with an increase in retail sales, the gold jewellery manufacturing hubs of Mumbai, Delhi, Kolkata and Chennai are also bustling with activity as jewellers are restocking gold. The overall momentum is expected to continue, according to experts, as gold prices are likely to fall further in the first week of July amid a strengthening of the US dollar.

GOLD PRICES TO FALL FURTHER

Saiyam Mehra, Chairman, All India Gem & Jewellery Domestic Council, said, “Prices are expected to fall from the current level by the first week of July. Consumers are waiting for the prices to fall further. There will be more demand from July onwards for gold for the upcoming festive season. People will book gold and take delivery later. However, this drop in prices is likely to be temporary and in the long run, gold will be bullish.”

Courtesy: Economic Times