Gold prices in India have “surged to the highest level in more than two years”, according to a report in Art of Jewellery. The rising prices are attributed to a weak rupee and and the fast approach of the celebrations of Diwali and Dhanteras at the beginning of November.
Dhanteras, which falls on November 5 – two days before the Diwali – is the most common day of the year to buy gold. According to the report, wearing or gifting “jewellery is thought to bring good fortune during celebrations and weddings”. Accordingly, the last quarter of the year is always the strongest time of year in gold demand in the country.
However, according to Nitin Khandelwal, chairman of the All India Gem & Jewellery Domestic Council, demand for gold “is very low this year” and the “higher prices may trim the amount of gold being bought”. He still remains optimistic as to a rise in gold purchases around Diwali “as no marriages can happen without jewelry”.
