Diwali 2018: High prices take sheen off gold on Dhanteras

The sale of gold and jewellery usually skyrockets on Dhanteras every year, however, this year sales have remained muted in the morning trade on Monday owing to sluggish demand from consumers amid high prices, according to industry players. Organised players, however, are expecting better sales later in the day. Unorganised jewellery players in India make up for roughly 70 per cent of the country's gold sales.

 "Footfalls are good but sales are moderate so far. Till few days back, we were thinking gold demand on the day of Dhanteras would be down 10-15 per cent, but looking at the pre-booking and footfalls, there should be least 5-7 per cent jump in sales today," All India Gems and Jewellery Trade Federation (GJF) Chairman Nitin Khandelwal told PTI.

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Both gold and silver are being purchased. Most buyers are restricting their purchase to tokens as gold prices are ruling high over Rs 32,000 per ten grams, he said.

Gold prices are ruling at Rs 32,690 per 10 grams on Monday in the national capital as against Rs 30,710 per 10 grams on the Dhanteras day in 2017.

According to Delhi Bullion Association's Surender Jain, gold demand is sluggish because of higher prices. Consumers are buying gold and silver coins.

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Ideally, gold rates should have been around Rs 30,000 per 10 grams, but the prices are ruling over Rs 32,000 per ten gram because of rupee depreciation. "The market is not able to adjust the increase of Rs 2,000 per ten gram," gold refiner MMTC-PAMP India Managing Director Rajesh Khosla said.

Precious metal is often believed to be a symbol of Dhanteras. People often buy articles made of gold or silver. Another popular tradition is to buy utensils. It is a common belief that the utensils will bring good fortune and prosperity to the members of the family.