India sees brisk gold sales on pre-Diwali Dhanteras festival

New Delhi: Pre-Diwali Dhanteras buying of gold and silver in India, the world's largest gold consumer, kick-started on a positive note on Friday on recovery of consumer demand with the softening of gold prices.

Gold prices have fallen by Rs 800-1,500 per 10 gram (24 carat) from the peak Rs 63,000-level on October 28 and this has evoked buying on Dhanteras, considered the most auspicious day in Hindu calendar for buying items ranging from precious metals to utensils, with traders expecting gold sales to surpass last year's level.

On Thursday, Gold prices plunged Rs 400 to Rs 60,950 per 10 grams in the national capital.

Gold prices in Delhi were ruling at Rs 50,139 per ten grams, excluding taxes, on 2022 Dhanteras day. In normal years, about 20-30 tonnes of gold are sold on a Dhanteras day.

Traders said footfalls are expected to pick up after 12 noon and will continue till late at night.

The best muhurat to buy silver and gold on Dhanteras will start at 12.35 pm on Friday and end at 1.57 pm on November 11, as per Drikpanchang.

"Gold prices are in favour of business. We are positive about good sales today. We are receiving positive response from consumers and footfalls are gradually increasing," All India Gem And Jewellery Domestic Council (GJC) Director Dinesh Jain told PTI.

With diamond prices fallen, the younger generation is buying light-weight jewellery and some are buying gold and silver coins, he said.

Jain, who is also the managing director of Mumbai-based PM Shah & Co Jewellers that has five stores, said, "We expect good sales this Dhanteras. The correct sale picture will be known in the evening." All India Gems & Jewellery Trade Federation ex-chairman Manish Jain said, "Rates have softened and consumer demand has picked up. We are seeing good footfalls." Consumers are buying gold and silver coins, and even silver utensils for puja purposes, he added.

Since Dhanteras last year, gold has given a mind-blogging return of almost 20 per cent, easily beating the returns of the Nifty 50, added Deveya Gaglani, Research Analyst (Commodities) at Axis Securities.