The recent fall in the price of gold from the highs of Rs 40,000 plus to Rs 37,683 per 10 gram is attracting customers especially as the festive season has commenced. Customers are flocking jewellery stores to place new orders.
Kumar Jain, Vice President, Mumbai Jewellers Association told Moneycontrol that there is going to be good demand for gold as prices have come down by around Rs 2,500 and people believe this is the right price to buy gold this festive season.
Moreover, the wedding season is commencing in November and would continue until July, where there will will be around 80-85 mahurat days, the highest in comparison to the 10 year average. The first mahurat day in November will see around 31,000 weddings in India, he said.
The price of the precious metal was down Rs 44 at Rs 37,683 per 10 gram in the retail market in Mumbai in evening trade on September 30. The decline was due to weak global cues and fresh round of trade talks between the US and China in Washington.
Gold touched an intraday high of Rs 37,640 and an intraday low of Rs 37,332 on the MCX. For the October series, the precious metal touched a low of Rs 31,520 and a high of Rs 39,885.
Gold futures for delivery in October were lower by Rs 375, or 0.99 percent on the MCX at Rs 37,375 per 10 gram in evening trade in a business turnover of 2,461 lots. Gold contracts for December delivery were trading lower by Rs 378, or 0.99 percent, at Rs 37,768 per 10 gram in a business turnover of 20,536 lots, while the far-month February contract was trading lower by Rs 402, or 1.04 percent at Rs 38,079 per 10 gram with a business volume of 1,032 lots.
The value of the December contract traded so far is Rs 2,434.38 crore and October contract saw value of Rs 1,612.47 crore.
At 12.33 GMT, spot gold was trading lower by $13.26 at $1,483.30 an ounce in London trading.