During India's Dhanteras festival, soaring gold prices, up over 60% year-on-year, prompted a significant shift in consumer preference from jewelry to gold coins and bars. This resulted in a 10-15% decline in overall gold sales volume but a sharp increase in total value, with jewelry demand specifically dropping nearly 30%. The robust demand for precious metals, including strong silver sales and a decade-high premium on gold, is driving increased inflows into physically backed ETFs, indicating sustained investor interest despite record prices.
During India's Dhanteras festival, record-high gold prices, which surged over 60% year-over-year to 132,294 rupees per 10 grams, significantly impacted consumer purchasing behavior. Overall gold sales volume declined by 10-15% compared to the previous year, though total value rose sharply due to elevated prices. Jewellery demand specifically dropped nearly 30%, as buyers favored gold coins and bars to circumvent 10-20% manufacturing charges. This shift highlights a robust belief in continued precious metal appreciation, with coins and bars experiencing high demand. Indian dealers are quoting a premium of up to $25 per ounce over official domestic prices, marking a decade-high and signaling strong local demand despite global price surges. Concurrently, silver demand is also robust, driven by a stellar price rally, with investors anticipating potential outperformance against gold. The sustained interest in precious metals is attracting strong inflows into physically backed gold and silver exchange-traded funds. Industry players are offering discounts on jewellery making to maintain buying interest through upcoming festive and wedding seasons. The market maintains an optimistic tone, expecting continued buying momentum, which underscores precious metals' role as a store of value.
AI-powered research, real-time alerts, and portfolio analytics for institutional investors.
Overall Sentiment
moderately positive
Sentiment Score
0.60
Ticker Sentiment
