Chennai: Just as when gold retailers were hoping to see a revival of demand after a long dull year, rains and the city’s political climate seem to have played spoilsport. Gold traders are worried about the incessant rains and traffic snarls over the weekend wrecking shopping plans.
“Though Deepavali is not our big season as in the north, a lot of impulsive purchases happen during this period,” said Mr N. Anantha Padmanabhan, regional chairman, All India Gem & Jewellery Trade Federation.
“But this time, for the last two weeks, people were afraid to come out with cash or carry back gold owing to the fluid political situation and just when things were getting right, monsoon seems to have caught on,” he said.
Gold prices have been falling on account of falling international prices. Prices of the yellow metal fell by 20 per cent during the last one year with US investors shifting their focus back to real estate and other instruments as investment options.
“However, prices have stabilised now,” said Mr Uday Vummidi of TN Jewellers Federation. During Deepavali time last year, gold prices ruled at Rs 2,870 per gram for 22-carat purity. But, this year, the rates are about Rs 2,549- Rs 2,578 per gram during the Deepavali week.
“It has been a mixed situation so far this year. Gold prices were ruling around $1,200 per ounce about 10 days back but now they have stabilised around $1,240 per ounce. This, in effect, has led to an increase of Rs 60 per gram of gold,” he added. On October 18, standard 22-carat gold ruled at Rs 27,240 per 10 grams.
Improving sentiments has kept the demand for gold jewellery on the higher side which said to have gone up by about 15-20 per cent this year, compared to last year.
“Definitely, this time we are having a better demand than last year. But those crucial last couple of weekends before Deepavali, when we usually see the rush, have been marred this time,” he lamented.
