Gold sparkles this Dhanteras on stable prices, PMLA withdrawal

Jewellers see sharp recovery in sales, with some eyeing an increase of as much as 25% in sales volumes

Gold demand on Tuesday on the occasion of Dhanteras, the day when buying it is considered auspicious. The expectation is that this was due to a stable price, favourable monsoon rain, resulting in hope for increase in rural incomes and, importantly, withdrawal of the earlier applicability of the Prevention of Money Laundering Act (PMLA) from the jewellery sector.
 
The PMLA withdrawal was announced a week before and gold demand emerged right after; the announcement had extended the cash purchase limit to Rs 200,000, from the earlier Rs 50,000. There was a rush to jewellery shops for booking jewellery and