Despite gold price surge, jewellers see strong sales in April-June quarter
Upstox
2 min read • Updated: March 22, 2024, 6:21 PM
Summary
Akshaya Tritiya, Gudi Padwa and the spree of weddings in the upcoming months can lead to a 10% growth in jewellery sales, Saurabh Gadgil, managing director of PN Gadgil Jewellers, told a news channel. The optimistic view comes at a time when gold prices are hovering around ₹67,000 per gram in the domestic market, and is close to $2,200 per ounce in the international market.
Despite the fact that gold prices are near all-time high levels, jewellers foresee strong sales during the April-June period or the first quarter of fiscal year 2024-25.
Gold has traded at an elevated rate in recent months, with the prices rising by 10.26% over the last year in dollar terms. The spot price hovers around $2,200 an ounce, with the latest jump seen after the US Federal Reserve reiterated its forecast of three rate cuts in 2024.
In the domestic market, the per 10 gram price of gold has increased in recent weeks to ₹67,000, significantly higher as compared to ₹62,000 at the start of this year.
Unfazed by the rising prices, retail jewellers have been stocking up gold in view of the upcoming festivals – Gudi Padwa on April 9 and Akshaya Tritiya on May 10. The two days are considered auspicious for buying new products, including jewellery, by several Hindus.
“Retailers are definitely stocking up for Akshaya Tritiya because we are expecting strong sales during the festive period,” Moneycontrol quoted Dileep Narayanan, the head of treasury and banking at Malabar group of companies, as saying.
Apart from the two festivals, the gold sales are expected to remain upbeat during the April-June period due to the weddings that are likely to be held during those months. Akshaya Tritiya, Gudi Padwa and the spree of weddings in upcoming months can lead to a 10% growth in jewellery sales in Q1 FY25, Saurabh Gadgil, managing director of PN Gadgil Jewellers, told CNBC-TV18.
Even as jewellers sound optimistic, the World Gold Council, in its latest outlook, said jewellery demand will likely remain subdued, even if prices moderate over the coming months. Meanwhile, higher prices could encourage investment into gold-linked financial products, the trade association added.