As the festival of Dhanteras, this year to be celebrated on October 29, approaches closer, many Indians are traditionally preparing to buy gold and silver.
However, this year, rising gold prices are giving consumers pause. Typically seen as an auspicious time to purchase precious metals, Dhanteras is driving anticipation in the bullion market, but escalating prices could impact both demand and household budgets.
Gold Prices Surge, Impacting Budgets
In the recent, Gold prices have seen a continuous upward trent.
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As of today (October 22), the 22-carat gold is priced at Rs 7,300 per gram and 24-carat gold at Rs 7,964 per gram, according to Goodreturns.
For consumers, this translates to a cost of Rs 73,000 for 10 grams of 22-carat gold and a hefty Rs 79,640 for the same quantity of 24-carat gold.
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The current rates, despite government efforts earlier this year to reduce customs duties on jewellery in the Union Budget 2024-25, showed little sign of abating.
The expectation that prices would stabilise or drop has not materialised. Instead, gold prices, along with silver, have surged, creating stress for households planning to invest in gold during the festive season.
Jewellery Stocks Take a Hit
The rising gold prices are also having a ripple effect on the stock market, particularly in the jewellery sector. Major jewellery stocks took a downturn today.
1. Kalyan Jewellers India Ltd
Kalyan Jewellers India Ltd also took a hit in the market, with its stock falling by 3.56 per cent, closing at Rs 679.
Kalyan Jewellers India Ltd |
2. PC Jeweller Ltd
The shares of PC Jeweller Ltd faced a sharp decline of 5 per cent today, closing at Rs 165.52 apiece.
3. P N Gadgil Jewellers Ltd
The shares of P N Gadgil Jewellers closed at Rs 708, registering a decline of 4.48 per cent.
4. Senco Gold Ltd
Senco Gold Ltd saw a significant drop in its stock price today, falling by 5.32 per cent to close at Rs 1,283.95 apiece.
5. Tribhovandas Bhimji Zaveri Ltd
The shares of the company ended the day at Rs 277.95 apiece, down by 6.67 per cent.
While Dhanteras typically sees a spike in gold purchases, this year may see cautious buyers watching the market closely.
