Gold may shine brighter this Akshaya Tritiya
KOLKATA: Gold traders are expecting Akshaya Tritiya sales to be better than last year on the back of lower year-on-year prices and a steady improvement in supply of cash at ATMs.
Demand for gold on the April 28 Hindu festival, which some communities consider auspicious for buying gold, could also swell on buyers' fears that the goods and services tax (GST) could turn the metal costlier, they said. The current 1% VAT may be replaced by a 6% GST in addition to the import duty which stands at 10%.
On Monday, gold was selling at about Rs 29, 535 per 10 gm in the domestic spot market, down 1.56% from that on Akshaya Tritiya last year. It was at a five-month high in the international market as the dollar weakened with investors taking refuge in safe haven assets in the wake of rising geopolitical tensions. Spot gold had risen by 0.7% to $1,293.90 per ounce, after hitting its highest since early November. “Since the rupee has appreciated against the dollar, the impact of rising gold prices is not fully being felt in India. Jewellers and retailers have restocked since end of March and early April in anticipation of a better Akshaya Tritiya and wedding season demand this time," said Prithviraj Kothari, MD, RiddiSiddhi Bullion.
Rajiv Popley, director of Popley & Sons said, “Post demonetisation, all numbers and calculations have changed. We will be glad to match the numbers of last year. Price definitely will have a role to play."
Samir Sagar, director of Manubhai Jewellers, said, “Though business is going on, from a strategic perspective, many decisions the brand would make will depend on the GST announcement. Consumers and jewellers will take the first few months to adapt to the new rule, but once that phase ends, the market will stabilise.“
Demand for gold on the April 28 Hindu festival, which some communities consider auspicious for buying gold, could also swell on buyers' fears that the goods and services tax (GST) could turn the metal costlier, they said. The current 1% VAT may be replaced by a 6% GST in addition to the import duty which stands at 10%.
On Monday, gold was selling at about Rs 29, 535 per 10 gm in the domestic spot market, down 1.56% from that on Akshaya Tritiya last year. It was at a five-month high in the international market as the dollar weakened with investors taking refuge in safe haven assets in the wake of rising geopolitical tensions. Spot gold had risen by 0.7% to $1,293.90 per ounce, after hitting its highest since early November. “Since the rupee has appreciated against the dollar, the impact of rising gold prices is not fully being felt in India. Jewellers and retailers have restocked since end of March and early April in anticipation of a better Akshaya Tritiya and wedding season demand this time," said Prithviraj Kothari, MD, RiddiSiddhi Bullion.
Rajiv Popley, director of Popley & Sons said, “Post demonetisation, all numbers and calculations have changed. We will be glad to match the numbers of last year. Price definitely will have a role to play."
Samir Sagar, director of Manubhai Jewellers, said, “Though business is going on, from a strategic perspective, many decisions the brand would make will depend on the GST announcement. Consumers and jewellers will take the first few months to adapt to the new rule, but once that phase ends, the market will stabilise.“
