CONNECT WITH US
eCommerce

eCommerce

India jewellers hold off gold buying, betting prices will drop

ET Retail – Ecommerce logo

Published on

Add as a preferred source on Google
India jewellers hold off gold buying, betting prices will drop

Indian jewellers are delaying gold purchases ahead of the festive season, betting that prices will fall further after dropping below $4,000 an ounce. MMTC-PAMP India says large jewellery chains remain cautious, while higher import duties, subdued rural demand and tighter import rules are expected to weigh on gold demand and imports during the October-December quarter.

Indian jewelers are holding back gold purchases ahead of their busiest demand season, betting that a recent drop in prices has further to run, according to the country’s biggest precious metals refiner. Large jewelry chains that typically account for the bulk of sales have yet to fully return to the market, said Samit Guha, chief executive officer and managing director of MMTC-PAMP India Pvt., a joint venture of state-owned MMTC Ltd. and Swiss refinery PAMP SA. Buying has instead been led by small- and mid-sized jewelers, some of which have placed repeat orders, he said. Gold fell below $4,000 an ounce last week for the first time since July, extending its decline to about 24% since the US-Iran war began in late February. Prices had surged past $5,400 to a record in January. Advt

Bigger jewelry makers typically step up purchases when prices start rising to lock in supplies before they become more expensive, while drawing down inventories when they expect further declines, Guha said. Demand in the world’s second-biggest gold consumer has remained subdued this year after the government more than doubled the import duty to 15% in May. Prime Minister Narendra Modi has also repeatedly urged Indians to curb purchases to contain a widening trade deficit.


Source link
Related Topics:eCommerce

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We TheMorningPulse.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It's possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.