Source: Livemint.com
Date: September 13, 2023
By: Sangeeta Ojha
Demand for gold is expected to increase for the next two to three months. There is a huge demand for yellow metal during festive periods, primarily driven by customs and traditions. The period from September to December traditionally marks an auspicious time, driven by festive and wedding seasons, boosting gold demand.
“In anticipation of the upcoming festive season, gold is expected to see a surge in demand. Despite a stagnant phase in gold prices due to economic challenges in the US, there’s optimism that gold demand will surge. This optimism stems from the robust performance of stock markets,” said Colin Shah, MD, Kama Jewelry.
There has been a paradigm shift in the way buyers perceive the yellow metal. The buyers have now largely moved on from purchasing gold for investment purposes to a fashionable statement wearable. With this backdrop along with rising income levels and increasing purchasing power among the buyer class, we foresee this festive season to be one of the best, added Shah.
“As the calendar inches closer to the much-awaited festival season, a familiar trend is poised to resurface, Indians will go to jewellery stores, which can drive an anticipated rise in demand for gold between September to November,” said Amit Khare, Associate Vice President at Ganganagar Commodity Limited (GCL)
Gold prices are trading near a 2-month low. Amit Khare said that as per the previous 5 years’ pattern, Gold generally makes a bottom in August-September, So this year we are hoping the same.
Meanwhile, MCX gold prices slipped on Wednesday. On the Multi Commodity Exchange, gold October futures were trading at ₹58551 per 10 grams, down by 0.13%.
Yashoraj Tyagi, COO, and CTO at CASHe said that festivities often mean individuals have more disposable income that they prefer to invest in assets like gold, aiming to safeguard their financial stability.
September 2023 features significant festivals such as Krishna Janmashtami, Hartalika Teej, Ganesh Chaturthi, and Anant Chaturdashi among others.
Also, the end of the Navratri festival marks the beginning of the wedding season. Gold jewelry demand is at its peak during the Indian wedding season.
