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Surge in gold prices New Delhi: Demand for gold in India normally picks up in October with the onset of the festival season and reaches its peak in November during Diwali and wedding season. But, this time gold business in India is telling an entirely different story. Jewellers are trying hard to survive the skyrocketing gold prices as the bullion markets are set ablaze on reports that the precious metal is touching a 18-year-high in international markets. Gold surged 7,200 per 10 grams, higher by 90 rupees from the previous close on Friday. Jewellers lament that the rising prices have affected their business and they are searching for customers even in the wedding season. "Only those people are ready to buy who have marriages in their houses or other important functions coming up. People who used to buy jewellery as gift items are reluctant to buy it now and are looking up at other options because of an increase in gold rates," said Abhinav Malhotra, a Delhi-based jeweller. Gold jewellery forms an important part of Hindu marriages, with parents gifting it to their daughters for financial security. It is considered an auspicious metal and people, especially women, like to buy it during religious festivals. Prices, however, hold the key to people's passion for the ornament. "I might buy something of a smaller size. I might not get what I am expecting for 10,000 (227 dollars). Obviously my choice of size and quality will go down because of their prize," said Sujata Sekhon, a customer. Gold surged to a new 18-year high in Europe on Friday on aggressive buying by investment funds and is now targeting the next big psychological number of 500 dollars an ounce, dealers said. India imports more than two-thirds of its annual demand of about 800 tonnes a year to feed the demand for gold bangles, necklaces and hair ornaments. |
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