The reviving economic activity post-Covid restrictions removal and fall in gold prices are expected to boost jewellery sales on the auspicious occasion of Gudi Padwa and Ugadi -- the new year in Maharashtra, Andhra Pradesh and Karnataka – that falls on Saturday.
Gold jewellery sales started picking pace since last December quarter even as gold prices escalated with the onset of Russia war on Ukrine. The unrest caused in global economy pushed gold prices near new high. However, in last one week prices have started falling with hopes of a ceasefire between the warring countries.
On MCX, gold for delivery on April 5 was down by ₹142 at ₹ 51,443, against the previous close of ₹ 51,585.
Festivals to drive demand
Kumar Jain, National Spokesperson, Indian Bullion and Jewellers Association, said the industry had recorded sale of about 45-50 tonnes during last Dhanteras and Akshaya Tritiya and expectations are that the sales during Gudi Padwa should beat this record.
The feel good factor on relaxation of all Covid restrictions and drop in gold prices will also playing a key role besides the pent-up demand from weddings, he said.
Somasundaram PR, Regional CEO (India), World Gold Council said in a post Covid scenario after 2 years, festive demand during upcoming new years in various parts such as Gudi Padwa, Ugadi and others in April, should drive the market sentiment up.
With inflation concerns providing impetus, he said retail demand for gold will remain healthy in this festive season, though spike in prices and volatility driven by geo-political events tend to act as headwinds, he added.
Ramesh Kalyanaraman, Executive Director, Kalyan Jewellers said since the start of the pandemic, this is the first Gudi Padwa/Ugadi where the showrooms will be fully operational and the demand momentum is expected to continue throughout the season.
“We recently announced a limited period Gudi Padwa/Ugadi offer in Maharashtra, Karnataka, Telangana and Andhra Pradesh, where customers can avail 50 per cent off on making charges on all jewellery and there has been an uptick in its demand across our showrooms,” he said.
Aditya Pethe, Director, Waman Hari Pethe Jewellers said usually buying gold during Gudi Padwa is customary but this year, it also signifies a step towards normalcy and new beginning with all Covid restrictions lifted and people are also shopping for the wedding season.