The recent surge in the prices was a momentum play following an escalation in the Middle East conflict, with Israel preparing to act on Iran’s missile attack. The US Fed Reserve’s interest rate cut, central banks’ gold buying, upcoming US election and geopolitical risk are continuing to remain the key supportive factors for bullion prices. Investors may look for accumulation on any decline in the prices. The current market environment could be favourable for a strategic allocation in gold as an investment in the portfolio, said Tapan Patel, Fund Manager-Commodities, Tata Asset Management.
Ajoy Chawla, CEO of Tanishq said “The response from customers so far this festive season has been encouraging despite very high gold prices. South and East regions were off to a quick growth from day one of Navratri while West and North picked up steam from Dussehra weekend followed by Karwa Chauth and Guru Pushya Nakshatra. Durga Puja sales growth in West Bengal was strong too. With the Dhanteras muhurat being spread over two days October 29 and 30 this year, we are optimistic about good sales across all customer segments and markets.”
“As we approach Dhanteras this year, we are optimistic about an increase in sales, driven by the strong sentiment towards gold and fine jewellery purchases during this auspicious period, “ said Piyush Gupta, director at PP Jewellers.
The demand for diamond jewellery is expected to be strong as the gold requirement is less in diamond studded jewellery. Also, polished diamond prices have fallen due to lesser demand in the global markets for the rock.
Demand for diamond jewellery is strong, with aspirations growing even in tier 2 and 3 cities where people are choosing diamonds for both special occasions and everyday wear. The wedding season, coinciding with the festivities, has further boosted positive consumer sentiment, with demand expected to continue into the new year, said Amit Pratihari, managing director of De Beers India.