Kolkata: Gold prices have seen a significant drop over the past two weeks, leading to optimism for a prosperous Akshay Tritiya celebration this year. Jewellery shops in the city are expecting a surge in demand during this festive season.
Decrease in Gold Prices
Gold prices in the Kolkata market are currently around Rs 6,873 per gram or Rs 68,730 per bhari for 22 karat pure metal. This marks a reduction of almost Rs 2,400 compared to prices two weeks ago. According to city jewellers, this decline is one of the steepest witnessed this year.
Insight: The sudden drop in gold prices can be attributed to the easing of geopolitical tensions in the Middle-East, which has calmed investors’ fears and led to a downward correction in gold prices. This shift in the market trend has created a favorable opportunity for buyers.
Anticipating Strong Sales
Rupak Saha, a zonal member of Gem and Jewellery Trade Council of India, mentioned, “This is a good time to buy gold as the downslide will not persist for long.” The industry in Kolkata had shown lukewarm response to buying due to high prices previously, but the current decline has sparked anticipation for a successful Akshay Tritiya sales season.
Insight: The recent dip in gold prices aligns with expectations, as external factors had been influencing the market trend. The upcoming Akshay Tritiya celebration is expected to witness increased consumer interest in purchasing gold at the current prices.
Factors Impacting Demand
Earlier in February, city jewellers experienced a 20% surge in demand as the wedding season resumed post-November and continued through March. However, factors like the heatwave and political uncertainty during the election season in India temporarily reduced the demand for gold.
Insight: Consumer behavior is influenced by various factors such as seasonal trends, economic conditions, and political stability. The current market conditions leading up to Akshay Tritiya offer a promising opportunity for gold buyers.
Optimism Among Retailers
Retailers like Suvankar Sen, MD & CEO of Senco Gold & Diamonds, are positive about the consumer interest in gold amidst ongoing global geopolitical uncertainties. The anticipation for a successful Akshay Tritiya celebration is shared among jewellery shop owners, who are observing high footfall and interest from buyers.
Insight: The consumer sentiment towards gold purchasing is often driven by market fluctuations, cultural celebrations, and investor confidence. Retailers are optimistic about the sales outlook for Akshay Tritiya, expecting a favorable response from consumers.
In conclusion, the current dip in gold prices in Kolkata has set the stage for a promising Akshay Tritiya celebration this year, with jewellers hopeful of strong sales and increased consumer interest in buying gold at the current prices. The evolving market dynamics and consumer behavior indicate a positive outlook for the upcoming festive season.
