Mumbai – A rebound in gold prices to a record peak has dashed the Indian bullion industry’s expectations of a lucrative festival season after their hopes were boosted by a deep cut in import duty two months ago to the lowest in a decade.
The festive season in India, the world’s biggest gold consumer after China, traditionally has been the time when people buy the most gold. It is considered auspicious as a present at weddings and during festivals such as Diwali and Dussehra. This year, Dussehra is on Oct. 12, and Diwali will be celebrated in late October.
After the duty cut, demand was robust, and jewellers made big bookings with jewellery manufacturers for deliveries ahead of the festive season, Ashok Jain, proprietor of Mumbai-based gold wholesaler Chenaji Narsinghji.