Lower Gold Prices Drive Strong Footfall and Sales During Dhanteras Across India

Jewellery stores across India recorded strong customer footfall and higher sales on Dhanteras as gold prices fell from their earlier highs.

Prices And Sales

In Mumbai, 24-carat gold cost Rs 1.49 lakh per 10 grams, while 22-carat gold stood at Rs 137,500. Prices had previously reached a high of Rs 1.80 lakh per 10 grams for 24-carat gold. For 22-carat gold, prices eased by Rs 235 per gram, dropping from Rs 13,385 on Thursday to Rs 13,150 on Friday. At Mumbai's Zaveri Bazaar, demand for bullion and jewellery rose by 40 per cent compared to last year's Dhanteras. Kumar Jain, spokesperson for the India Bullion and Jewellers Association, noted that he opened his store at 9 in the morning instead of noon due to the heavy rush. PNG Jewellers expected a 25 to 30 per cent increase in performance over last year, supported by lower prices, advance bookings, and a long Diwali weekend, according to chairman and managing director Saurabh Gadgil. Kama Jewelry also saw a 10 per cent spike in sales, with managing director Colin Shah noting strong interest.

Market Trends

Customers showed a growing preference for exchanging old gold and buying lightweight jewellery such as pendants, bangles, and chains. Smaller denominations of gold and silver coins, along with silver articles, also saw steady demand. At Kalyan Jewellers, executive director Ramesh Kalyanaraman highlighted strong consumer enthusiasm and uniform pricing across India. Kalyanaraman and Saurabh Gadgil both noted strong traction in Tier-II and Tier-III cities like Jaipur, Dehradun, Surat, Belgaum, Ara, and Raipur, alongside suburban areas such as Purushawalkam in Chennai, Chembur in Mumbai, and Karol Bagh in Delhi. Additionally, buyers purchased wedding, temple, and diamond jewellery, with 18-karat and 14-karat designs performing well.

Context

Dhanteras marks the beginning of the five-day Diwali festival and is traditionally considered an auspicious day for buying precious metals like gold and silver in India. Festive demand during this period is closely tied to wedding season preparations and consumer sentiment regarding price movements.