Dussehra is just around the corner while Dhanteras and Diwali aren’t that far away. This is the time when consumers indulge in buying jewellery. With gold prices recording a six-month low, there could be a fresh demand for jewelleries.
According to industry experts and market analysts, gold prices are expected to stay low till the end of December with the US Federal Reserve hiking interest rates by 75 bps (basis points) on 21 September 2022.
The price of 22-carat gold fell to Rs.45,800 per 10 grams on 21 September. However, there was a slight increase in price the next day. During Akshay Tritiya, an occasion considered to be auspicious to buy gold, the price hovered around Rs.48,000 per gram.
The hawkish stance of the US Federal Reserve has affected gold rates with the precious metal witnessing a price dip of 1% on 22 September 2022.
Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.12% to 952.16 tonnes on Wednesday from 953.32 tonnes on Tuesday, according to a report published by Economic Times.
Industry experts are of the opinion that the dip in gold prices, especially when Navarathri, Diwali and Dhanteras are knocking at the door, would boost gold sales. Experts are suggesting that even if there’s a hike in gold price, it would be marginal – maybe around Rs.400 to Rs.500.
Also, with the wedding season around the corner, there has been substantial advance booking of gold jewellery to hedge against a possible gold rate hike in the future.
Consumers are keeping a close eye on gold rates and paying 10% in advance to book jewellery, B Govindan of Bhima Jewellers told Moneycontrol. Jewellery store walk-ins have increased by 40%, he further added. Additionally, buying new gold ornaments in exchange for old ones has also increased. However, the quantity of gold purchased is still below pre-COVID levels.
So, are you planning to book gold jewellery in advance as well? With the price drop, buying gold, especially during the festive season, looks like a lucrative deal. We would love to hear your opinion in the comment section.
For more such interesting stories, keep following our #TrendingNow series to get all the latest updates from the world of finance and business.
Disclaimer: Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.
This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
List of Holidays in October 2023
As soon as the monsoon departs and the sky clears, the weather becomes ideal for planning a getaway... Read More »What is Paper Trading – How to Start and Apps in India
Paper trading is a method of practising trading and testing investment strategies in a simulated vi... Read More »What is V Shaped Recovery – Its Features and How is it Different From Others
It’s a term that’s used to describe a decline in the economy followed by a period of star... Read More »What is Valuation of Shares – Its Methods And How Does It Help Investors
Before investing, investors try to gauge the true value of a company's shares. This process of dete... Read More »What is Risk Premium and How it Affects Returns?
Risk premium is the minimum incentive people are willing to accept as compensation for investing in... Read More »#TrendingNow: India Becomes Russia’s 2nd Biggest Oil Buyer; Middle East Imports Lowest in 19 Months
India's oil imports from the Middle East fell to a 19-month low in September while Russian imports ... Read More »#TrendingNow: Investors Punish Zuckerberg over Costly Metaverse; Stock Down 20%
Investors rushed to dump Meta Platforms Inc's stock in after-hours trading, pushing it down 20% and... Read More »#TrendingNow: Dove, TRESemme Dry Shampoos Recalled Over Cancer Risk
Unilever PLC has recalled aerosol dry shampoos, including brands such as Dove, Nexxus, TRESemme, Su... Read More »#TrendingNow: India Sees Strong Gold, Jewellery Sales on Dhanteras
Dhanteras saw strong sales of gold, jewellery, and coins this year, The Economic Times quoted data ... Read More »What is UPI Lite and How to Set it Up on the BHIM App?
Reserve Bank of India Governor Shaktikanta Das launched three key initiatives at the Global Fintech... Read More »#TrendingNow: India Lost a Whopping $159 Billion Due to Extreme Heat in 2021, Says Report
India suffered an income loss of a whopping $159 billion or 5.4% of its gross domestic product (GDP... Read More »#TrendingNow: Arunachal’s Hollongi Airport Almost Ready, IndiGo’s Direct Delhi Flight a Possibility
Arunachal Pradesh’s Hollongi Airport is almost ready for commercial flights with leading airline ... Read More »Top 10 Chit Fund Schemes in India in 2023
Chit funds are one of the most popular return-generating saving schemes in India. It is a financial... Read More »10 Best Gold ETFs to Invest in India in February 2023
Gold ETFs or Gold Exchange Traded Funds are passively managed funds that track the price of physica... Read More »Top 10 Demat Accounts in India [Lowest Brokerage Charges]
A Demat account was created to eliminate the time-consuming and inconvenient procedure of purchasin... Read More »20 Best Index Funds in India to Invest in 2023 (Updated on 31st Jan)
What is an Index Fund? An index fund is a type of mutual fund or exchange-traded fund (ETF) that... Read More »Best Arbitrage Mutual Funds to Invest in India: Returns and Taxation
Arbitrage funds are hybrid mutual fund schemes that aim to make low-risk profits by buying and sell... Read More »Best SIP Mutual Funds To Invest In India (2023) – Its Types And Taxation
A Systematic Investment Plan (SIP) is a convenient way to invest a fixed sum in mutual funds. For i... Read More »10 Best Corporate Bond Funds in India 2023 – With Returns
Corporate bond funds are debt funds that invest at least 80% of the investment corpus in companies ... Read More »10 Best Banks for Savings Account in India (2023)
A savings account keeps your money safe, and lets you earn interest every quarter. There are many b... Read More »All information is subject to specific conditions | © 2023 Navi Technologies Ltd. All rights are reserved.
Start Small. Dream Big.
Start your Investment Journey with just ₹10