Gold demand strong as import duty cut boosts Dhanteras festival buying: MMTC-PAMP

New Delhi: The gold demand in the country has strengthened during the key festival of Dhanteras, buoyed by a recent reduction in import duties and traditional buying patterns, a senior MMTC-PAMP official said on Tuesday.

"The market sentiment for gold remains robust this Dhanteras season, with sustained demand for our pure gold products," MMTC-PAMP Managing Director and CEO Vikas Singh told PTI.

The reduction in import duty from 15 per cent to 6 per cent has amplified festival season purchases, with consumers showing a strong preference for high-purity gold products, he said.

"Customer preference for quality and purity continues to be a key driver in purchase decisions, particularly for our 24K gold products with 99.99 per cent + purity," Singh added.

The positive momentum is expected to continue into the upcoming wedding season, which traditionally accounts for approximately half of India's annual gold consumption, Singh said.

He noted that beyond seasonal factors, gold demand benefits from year-round cultural practices.

"Traditional rituals during childbirth and naming ceremonies, which can take place any time of the year, continue to add value to this precious metal due to its significance and consideration as a blessing," according to Singh.

India is one of the world's largest gold consumers, with demand driven by cultural and religious factors and investment considerations.