Thaindian News

New Delhi, Oct 24 (IANS) Gold sales were high on the auspicious day of Dhanteras Monday as buyers flocked to jewellery stores despite the high prices of the precious metal.

“The day began well and the sales are up,” Balram Garg, chief executive and managing director of PC Jewellers, told IANS.

The spot gold prices in the national capital hovered around Rs.27,000 per 10 grams, while in Mumbai it was around Rs.27,200.

According to Garg, the expected sales increase would be in the vicinity of 20-25 percent compared to any given day of the year.

Other jewellers in the national capital’s famous Dariba Kalan area near Chandni Chowk told IANS that sales were picking up on Dhanteras, when it is considered auspicious to buy gold and other metals, even though the quantity of purchases have been low.

“Sales are good. People are buying gold but in lesser quantities due to high prices,” said Praveen Verma of Vipul Jewellers in old Delhi.

“Earlier, if a person bought a 20 gram gold coin, this time they are buying 10 grams or five grams. But nevertheless, they are buying,” he said.

Verma’s views were corroborated by Renna Walia of Angel Broking.

“Investors are cautious and are buying in a limited manner due to the high prices as well as economic uncertainty in the international markets,” said Walia, who is senior research analyst, international commodities and currencies.

Walia added that though gold sales will pick up in the festive week, the overall sentiment in the market remains low.

“While the third quarter is the season for high sales, this year it is expected that the sales would remain low,” Walia said.