3 days ago
Pune customers in wait-and-watch mode to buy gold as prices correct
Pune: Pashan resident Kushagra Agarwal rushed to the jewellers last week as soon as gold prices reduced slightly, to Rs 95,784 per 10g, as he had to buy gold for his son's wedding. With a Rs 3,000 to Rs 4,000 per 10 g reduction in the price of gold, jewellers expect many other residents in the city to walk into stores in the coming days.
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The gold industry has been struggling to find buyers over the last six months as prices have been consistently rising. The price of gold, which was hovering around the Rs 1 lakh mark last month for 10g, is now trading at Rs 96,800/10g grams, excluding GST.
Agarwal said: "It is tough to time the market, so we quickly went and booked gold at 9,500/g rate last week. We need to get some jewellery made for our son's wedding, so we have partially made the purchase."
Many customers are also waiting to see if the prices drop further. "I need to buy gold jewellery for my daughter's wedding in Dec. I have been looking for a window when prices are lower. The moment it reduces further, I will make a purchase," said Ramesh Marwah, a resident of Wanowrie.
Pawan Jagtap, the owner of Siddhi Jewellers in Hadapsar, said opportunistic customers are always waiting for gold prices to correct further before making purchases.
"When the price of gold and silver is stable, then there is a good amount of buying. When there are fluctuations, people try to time the market. Gold has gone out of the reach of the common man," Jagtap said.
Jewellers at Zaveri Bazaar in Mumbai echoed similar sentiments. "Whenever gold prices reduce, buying activity pauses as there is an expectation that prices will reduce further. The moment it starts climbing again, customers rush to the market to buy," said Anil Jain, a jeweller in Zaveri Bazaar.
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Analysts said that with the price of gold falling to within reach of a six-week low, it is more likely a correction than the beginning of one. "The recent pullback in gold prices has stemmed mainly from the relaxation of geopolitical tensions, along with some profit-booking taking place, following recent strengths," said Renisha Chainani, head of research at Augmont, an integrated gold platform.
The festive season is set to begin mid-July, beginning with Shravan, followed by Rakhi, Ganeshotsav, Dasara and Diwali.
Buying sentiment has turned positive ahead of the festive season, said Dr Saurabh Gadgil, the chairman and managing director of PNG Jewellers. "Customers have started making their purchases actively, and the current price range seems to have been accepted. Interestingly, recycled gold is contributing to almost 50% of heavy purchases, with people exchanging old designs for new ones," he said.
