Gold prices look set to increase
The price of gold is currently at a four-month low – but this prime window of opportunity for investment could be about to slam shut. According to reports this week from the Economic Times, there was a serious uptick in demand for gold on the day of Akshaya Tritiya, which is traditionally considered to be auspicious day to buy the precious metal. This year saw jewellers reporting a 30% increase in footfall and an increase in consumer confidence, prompted by lower prices. Larger jewellery stores said they had experienced double digit growth and a higher value of sale per customer. All-India Gem & Jewellery Domestic Council chairman Anantha Padmanabhan said, “The Southern region has done extremely well, followed by the North. Due to the long wedding season, gold and jewellery sales have been encouraging so far this year.” The same report says that some bullion traders experienced an increase in demand for bullion of around 20%.
The level of demand has been so great, the Economic Times reports that it could lead to an increase in global gold prices. The growing appetite for gold in India has already been cited by industry experts several times this year as a very positive driver for gold demand.