Tue Oct 29 07:23:58 UTC 2024: ## Festive Cheer Expected to Boost Gold Sales in India
**New Delhi:** The All India Gem and Jewellery Domestic Council (GJC) predicts a significant 30% surge in gold jewellery retail sales during the upcoming festive season, despite anticipated slowdowns in exports due to weak US demand.
GJC Director Kamal Singhania estimates retail sales to reach 120 tonnes this festive season, a considerable increase from the 92 tonnes recorded last year. This optimistic outlook comes despite a rise in gold prices, currently hovering at Rs 80,000 per 10 grams.
Singhania attributes the surge in demand to increased public interest in gold driven by rising prices and the strategic value of gold in international markets. He highlighted the growing trend of central banks, including the Reserve Bank of India (RBI), accumulating gold reserves, particularly in the BRICS group where central banks are aiming to maintain 40% of their reserves in gold.
The RBI, in line with this trend, has increased its gold reserves, repatriating over 100 tonnes from the UK in 2024. Further additions to its stock are expected in the coming months, bolstering the country’s gold reserves.
The GJC, representing 3,500 retail jewellers across India, attributes the expected surge in demand to a combination of factors including pricing, cultural significance of gold purchases during festivals, and the recent government measures, such as the customs duty cut, which have helped stabilize gold prices.
With the festive season approaching, the Indian gold market is poised for significant growth, driven by a confluence of factors including rising demand, strategic investment, and government policies.
First Piper 