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ShareMumbai: After touching an all-time high of $1,054 per ounce (one ounce = 31.1 gm) on Thursday, the international price of gold came down marginally to $1,049 per ounce a day later. But the price of the metal has not increased much in India as the rupee has gained against the dollar.
"The rupee has appreciated to 46 per dollar. So, in rupee terms the price of gold has more or less remained the same," said Amol Tilak, research head, Kotak Commodity Services.
Still, Rs15,855 for 10 gm of gold is high and has resulted in decreased buying in the festival season. "The demand for gold jewellery is down 30-40% this time compared to last year. But we are expecting sales to pick up since dhanteras is just a week away," said Uttam Lodha of Sundeep Jewellers in Mulund.
"Dussehra was at the month-end and so people did not spend. But now a lot of people have got Diwali bonuses and so may buy." People who are buying gold are doing so in smaller quantities. "Our budget is the same, so the quantity will be lesser," said Mrinal Khairmode, a teacher who lives in Navi Mumbai.
"Families with impending weddings are buying gold without changing their budget. But because of the high price, the quantity they are getting is low," Lodha said. The lowering of quantity has made buyers go in for lighter jewellery that still look substantial to the eye.
"Lightweight jewellery will be in demand as the pricing is more attractive. Few weeks ago, I was at a showroom in Indore and I saw many people exchanging old jewellery for lightweight stuff that looks bigger," said Vedant Jatia, director, Indian Institute of Jewellery.
Buyers are also opting for gold mixed with other metals. "Again, because of the high price of gold, jewellers are forced to offer fusion metal or pure silver jewellery," Jatia said.
There is no ray of hope for those waiting for prices to fall. "We expect gold prices to remain stable. The higher price regime is likely to continue and it may be between Rs15,000-15,700," said Amol Tilak of Kotak Commodity Services.
(With inputs by Brinda Majithia & Priya Jayakumar)
