Throughout India, this year’s celebration had a solid impact on gold demand, with high turnout of buyers.
Though demand has been volatile through most of the year, lower prices at the start of the month created some optimism.
It had been busy ahead of Diwali in early October due to the price correction. But, given the festive season is still underway and the wedding season follows, the recent cooling off in the gold price just ahead of Dhanteras may bode well for demand, at about 25 to 30% higher sales this Diwali, according to jewellery retailers.
Therefore, the solid physical demand in India and other emerging markets should provide solid support for gold as prices hold elevated gains into year-end, India’s wedding season.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough & Polished
