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Gold prices regained the crucial level of Rs 29,000 per 10 gm after six weeks in New Delhi on Friday on brisk buying by stockists and retailers for the wedding season amid a firming global trend.
Master tailors, textile manufacturers and custom clothiers, however, say the upcoming festive season, reinvention in the form of new collections and digital outreach are salvaging the situation somewhat.
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Gold prices on Wednesday jumped to all-time high of Rs 30,420 per 10 grams in the bullion market here on the back of soaring demand ahead of the wedding season amid firming trends in global markets.
Recovery is attributed to higher domestic demand, export orders and import by NRIs.
The yellow metal now trades at a 0.5 per cent premium over its landed cost, compared to a 4 per cent discount in mid-September because jewellers have voluntarily withdrawn the display of cash price from their website.
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Confidence had ebbed in the last few years due to default by some errant domestic retailers and exporters. Moreover, many jewellers are believed to have diverted the fund collected through monthly deposit schemes to pay 'mark-to-market' margins on various loans.
The ongoing unrest in Kashmir, which has so far claimed 111 lives since June 11, has cast its shadow over the wedding season in the Valley.Kashmiri marriages, known for their extravagance and boisterousness, became a low key affair this year. The Wazwan, an elaborate feast of 35 items served during weddings, was trimmed to include only a few dishes.The multi-million rupee marriage industry in Kashmir faced a huge slump this year.
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Dealers are selling gold at a discount of Rs 175 for 10 gm.
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Meanwhile, retail jewellery sales in India have declined by 50 per cent since gold price started its uptrend nearly two weeks. Buyers deferred their fresh purchase amid expectations of a correction in gold prices from the current high level.
Designer Pria Kataaria Puri held back-to-back showings over the weekend, putting on display a tantalising array of bridalwear and red carpet specials alongside jewellery by TBZ Nirmal Zaveri and Gitanjali Jewels. Check it out.
Prices of milk and derivatives such as cheese, butter, curd and skimmed milk powder were subdued for two years, on a supply surplus.
Globally, gold climbed 1.85 per cent to $1,230.70 an ounce.
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Silver coins, however, continued to trade in a narrow range.
Silver coins, however, held unchanged at Rs 70,000.
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Gold prices this year are higher than last year, and the goods and services tax is an additional burden for consumers
Dealers anticipated a sharp rise in jewellery demand this wedding season, but then came demonetisation.
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Even those reaching out to jewellery showrooms at the peak of the marriage season are putting a cap on their purchases, jewellers rued.
Gold prices may be scorching at an all-time high of Rs 16,000, but it has failed to keep away jewellery buyers from making purchases ahead of the festive and marriage seasons in anticipation that the rates may shoot up further.
Globally, gold added 0.4 per cent to $1,228.65 an ounce in Singapore.
In Delhi, gold of 99.9 and 99.5 per cent purity gained Rs 110 each to Rs 27,210 and Rs 27,010 per 10 gram, respectively.
The ongoing wedding season could not boost the trading sentiment and low demand from jewellers and retailers was witnessed, traders said, adding that a weak global trend because of strengthening of dollar also reduced appeal for the bullion.
Silver ready rose by Rs 100 to Rs 37,000 per kg.
Most jewellery shops and establishments in the country are shut since March 2.
Traders said stockists buying for the ongoing marriage season mainly led the recovery in gold and silver prices.
"Despite the marriage season being on, almost all gold ornament shops have reported a sharp fall in their sales," said P Satya Narayan Senapati, president, Berhampur Jewellery Association. At the peak of the marriage season, the gold trade in Behrampur reached around Rs 1 crore (Rs 10 million) per day earlier. Given the uptrend and volatility in the price of gold, there is scanty demand for the yellow metal and only need-based buying by the customers.
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