Though prices are at a new high in India, buyers are picking up smaller pieces of gold jewellery and items to mark the onset of the festive period this week.
Author: Shivom Seth
"The lure of the yellow metal seems to be back and gold prices have been growing from strength to strength. On Monday morning, India's benchmark October gold contract extended gains to hit a high of $558.70 (Rs 31,077) per 10 grams, following a rally in the world markets and a weak rupee. On Friday, the yellow metal hit another life-time high in Rupee terms of $564.35 per 10 gram.
"It seems, however, that high price levels have not really dampened retailers' seasonal buying moodin the run up to the festive season that kicks off this week in India. Bulk purchases for marriages continue, with most retailers stocking up and individuals buying smaller items of gold jewellery.
"The festive season brings to into play its own share of discount offers. As the marriage season kicks off in Kerala, in South India, this week also marks the onset of Onam, a festival to celebrate the harvest festival in the South, with pomp and ceremony. ..."