 "Gold glitters on festive demand, up Rs 590/10g")
Gold regained its glitter to trade Rs 590 higher at Rs 27,550 per 10 grams in the national capital on Friday on the back of increased demand from jewellers and retailers, driven by ongoing festive and wedding season. Silver also recorded a significant rise of Rs 550 to Rs 39,900 per kg on increased offtake by industrial units and coin makers.
Bullion traders attributed the rise to emergence of buying by jewellers and retailers driven by ongoing Navratras, considered as an auspicious week for making new purchases according to Hindu mythology. Gold has witnessed the biggest rise since June 20 this year when it had gained Rs 605 to Rs 28,625 per 10g.
Besides firming trend overseas, as tensions in West Asia boosted demand for protection of wealth coupled with weakening rupee that made import costlier, also buoyed sentiments, they said.
In Delhi, gold of 99.9 and 99.5 per cent purity zoomed Rs 590 each to Rs 27,550 and Rs 27,350 per 10g, respectively. Sovereign, however, held steady at Rs 24,200 per piece of 8g. It had lost Rs 250 in Thursday trade.
Also, silver ready spurted by Rs 550 to Rs 39,900 per kg and weekly-based delivery by Rs 685 to Rs 39,540 per kg.
The white metal had lost Rs 650 in the previous session.
Gold demand to rise: WGC
The World Gold Council (WGC) is confident that 2014 would end on a robust note in gold demand in India, contrary to the initial drop in the first half. "This year's first half has been a little challenging. The jewellery demand in terms of volume from January to June compared to the same period last year is lowered by 14 per cent. But this is a short-term trend," World Gold Council Director Jewellery for India Vipin Sharma told PTI.
"In the long run, we see the fundamentals are very strong. Now that the festive season is starting and the wedding season setting in, we are looking at a demand figure in the region of 850 tonnes to 950 tonnes.
"We see a very solid and robust trend as far as long term demand and that of the year-as-a-whole is concerned. We are quite positive in terms of what to anticipate for the last quarter particularly," Sharma said.
He said the wedding season constituted one of the biggest segments, as 50 per cent of the total gold consumption occurred during that period.
According to Sharma, who is responsible for the strategic development of the WGC's Jewellery division in India, short-term fluctuations were a common trend and depend on the economic reasons as well as on the sentiments of the consumers.
"Short-term fall is not new. It goes with the demand which sometimes shoots up, sometimes goes down. Last year in the April-May period we saw an unprecedented spurt in gold demand because of certain drop in prices. So we continue to see short term trends specific to economic reasons, sometimes to sentiments at consumer-level and how their anticipation how they foresee the prices," Sharma said.
Talking about the Indian gold market's future, the WGC official sounded quite hopeful going by the trend in the last five years.
"India's love for gold is well known and commodities that historically associated with every celebrations in the country. We continue to see a very robust long term trend in India ...
"In the last five years, the total demand, at an average it has been more than 800 tonnes a year which is large and significant quantity. So, long term trends continue to be very healthy and robust," Sharma said.
Bullion traders attributed the rise to emergence of buying by jewellers and retailers driven by ongoing Navratras, considered as an auspicious week for making new purchases according to Hindu mythology. Gold has witnessed the biggest rise since June 20 this year when it had gained Rs 605 to Rs 28,625 per 10g.
Besides firming trend overseas, as tensions in West Asia boosted demand for protection of wealth coupled with weakening rupee that made import costlier, also buoyed sentiments, they said.
In Delhi, gold of 99.9 and 99.5 per cent purity zoomed Rs 590 each to Rs 27,550 and Rs 27,350 per 10g, respectively. Sovereign, however, held steady at Rs 24,200 per piece of 8g. It had lost Rs 250 in Thursday trade.
Also, silver ready spurted by Rs 550 to Rs 39,900 per kg and weekly-based delivery by Rs 685 to Rs 39,540 per kg.
The white metal had lost Rs 650 in the previous session.
Gold demand to rise: WGC
The World Gold Council (WGC) is confident that 2014 would end on a robust note in gold demand in India, contrary to the initial drop in the first half. "This year's first half has been a little challenging. The jewellery demand in terms of volume from January to June compared to the same period last year is lowered by 14 per cent. But this is a short-term trend," World Gold Council Director Jewellery for India Vipin Sharma told PTI.
"In the long run, we see the fundamentals are very strong. Now that the festive season is starting and the wedding season setting in, we are looking at a demand figure in the region of 850 tonnes to 950 tonnes.
"We see a very solid and robust trend as far as long term demand and that of the year-as-a-whole is concerned. We are quite positive in terms of what to anticipate for the last quarter particularly," Sharma said.
He said the wedding season constituted one of the biggest segments, as 50 per cent of the total gold consumption occurred during that period.
According to Sharma, who is responsible for the strategic development of the WGC's Jewellery division in India, short-term fluctuations were a common trend and depend on the economic reasons as well as on the sentiments of the consumers.
"Short-term fall is not new. It goes with the demand which sometimes shoots up, sometimes goes down. Last year in the April-May period we saw an unprecedented spurt in gold demand because of certain drop in prices. So we continue to see short term trends specific to economic reasons, sometimes to sentiments at consumer-level and how their anticipation how they foresee the prices," Sharma said.
Talking about the Indian gold market's future, the WGC official sounded quite hopeful going by the trend in the last five years.
"India's love for gold is well known and commodities that historically associated with every celebrations in the country. We continue to see a very robust long term trend in India ...
"In the last five years, the total demand, at an average it has been more than 800 tonnes a year which is large and significant quantity. So, long term trends continue to be very healthy and robust," Sharma said.