COMMODITY OUTLOOK: The recent rise in gold prices, which is hovering around Rs 60,000 per 10 grams, is likely to dampen consumer demand this Akshaya Tritiya, with jewellers expecting a 20% decline in sales in volume terms.
"With gold prices crossing Rs 60,000 per 10 grams recently has made consumers wary of buying the yellow metal. Even though the prices have come down a little bit since then, prices remain bullish. This will affect the sales during Akshaya Tritiya, considered auspicious to buy precious metals. We expect a 20 percent dip in volume from last year," All India Gem and Jewellery Domestic Council (GJC) chairman Saiyam Mehra said.
During Akshaya Tritiya, 40 percent of the business is done in the south, 25 percent in the west, 20 percent in the east and the remaining 15 percent in the north, he said. Echoing a similar view, former GJC chairman and NAC Jewellers (Chennai) Managing Director Anantha Padmanabhan said that the ruling high gold prices will have an impact on demand this Akshaya Tritiya. "We are already seeing the impact of the sudden rise in gold prices and we expect a 10 percent decline in sales in terms of value this Akshaya Tritiya compared to last year. In terms of volume, we are expecting a 20 percent decrease in demand," he added.
However, if there is a sudden dip in gold prices it will boost sales, he added. Commtrendz Risk Management Services CEO Gnanasekar Thiagarajan said the gold prices, which are currently ruling at Rs 60,280 per 10 grams level, though bullish, are likely to remain stable for sometime.
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