'Gold-en offer to attract consumers

Being an auspicious day, consumers prefer to execute their purchase orders on Guddi Padwa

This 'Guddi Padwa' has smoothened gold purchases with double benefit to buyers.

While gold prices have plunged by over 1% on Thursday following global trend and poor local demand, jewellers are offering a hefty discount in making charges to swell their business on this auspicious occasion.

The Guddi Padwa is celebrated across the country in different forms. And hence, the day (falling this year on Thursday) is considered as auspicious for across the country.

While in Karnataka the day is celebrated as 'Ugadi', in Maharashtra it is known as 'New Year'.

Elsewhere also, the day of Guddi Padwa is enjoyed in some other forms.

Being an auspicious day, consumers prefer to execute their purchase orders on the day of the
Guddi Padwa. Hence, gold sales shot up on this day.

In order to cash in on, the popular jewellery manufacturer and retailer Tribhovandas Bhimji Zaveri is offering 25% and 35% off on making charges in ornaments made of gold and diamond respectively.

Other jewellers have also offers in their kitty to attract business on this occasion.

“Consumers are currently staying away from fresh purchase amid expectations of further fall in gold prices. A number of research institutions have forecast a weak trend in gold prices for short term. Hence, buyers are booking only need-based quantity of jewellery and bullions resulting into low purchases in Mumbai’s Zaveri Bazaar,” said Lalit Jagawat, Partner, Nakoda Bullion, a bullion dealer in the popular Zaveri Bazaar.

But, the fall in gold price is opportunistic which may bring some new purchasers to the market, he added.

Standard gold fell sharply by Rs 300-400 to trade at Rs 29,050 per 10 grams early Thursday morning.

US gold futures for June delivery settled down $27.90 an ounce at $1,558.80 an oz. Gold prices were down as signs that Fed will gradually scale down its bond buying program towards the year end dented gold’s inflation hedge appeal.

Prices were also pressured as the EU indicated that Cyprus would sell 400 million euros worth of gold reserves to finance part of its bailout which created panic in the market and triggered selling.

Kunal Soni, an Analyst with Emkay Commotrade believes that gold prices are expected to go further down as FOMC minutes indicating slowdown of easing by year end will continue to put pressure on prices. Strong US equity markets are also likely to dent gold’s safe haven appeal.

Bullion in India is expected to follow international prices as currency market was closed today for Gudi Padwa.

Gold for June delivery on the Multi Commodity Exchange (MCX) was down by 1.41% at Rs 29,230 per 10 grams.