Current spree in weddings may help push India’s gold imports to 6-year high

Couples in India rushing to tie the knot following a lifting of some virus curbs are giving a huge boost to domestic jewellery trade. About 2.5 million ceremonies are estimated to have taken place since mid-November. It’s a stark turnaround for India’s jewellers, who have seen demand hammered for almost two years.

The bumper festival season may help push India’s gold imports to as much as 900 tonnes this year, the highest in six years, Metals Focus said. That’s up from about 350 tons last year, according to World Gold Council figures. “Lower prices and pent up demand has helped boost sales, but we are also seeing a lot of weddings this year with some estimates suggesting that we could have a record number,” said Chirag Sheth, a consultant with Metals Focus, reported in Business Standard.

A recovery in consumer confidence and a retreat in gold prices from last year’s peak are likely to further bolster demand.

Meanwhile gold price in Delhi rallied by Rs 398 to Rs 47,762 per 10 gram reflecting gains in precious metal prices in the international market. In the previous trade, the yellow metal had settled at Rs 47,364 per 10 gram. Silver also gained Rs 1,033 to Rs 61,147 per kg from Rs 60,114 per kg in the previous trade.

In the international market, gold was trading with gains at USD 1,808 per ounce and silver was flat at USD 22.62 per ounce. Gold price rally is supported by weaker dollar and plunge in US bond yields.

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