Hyderabad witnesses increased demand of gold

Mumbai/Hyderabad: The retail gold jewellers in Hyderabad witnessed a robust increase in sales of gold jewellery on the occasion of Akshaya Tritiya. Reiterating this fact, Ramesh Kalyanaraman, executive director, marketing and operations, Kalyan Jewellers said, “We have registered a 30 per cent growth in gold jewellery sales during this Akshaya Tritiya compared to last year, as there is a positive consumer sentiment due to stable gold prices, supported by global fundamentals.”

“The highest purchase during Akshaya Trithiya is always of gold jewellery followed by bars and coins. Overall, all prominent showrooms recorded an increase of sales between 20 to 30 percent,” said Twin Cities Gold Merchants Association, Advisor, Mohanlal Gupta. Meanwhile, the sale of the yellow metal saw a moderate pick up in demand nationally. However, industry sources said that the gold jewellery sales during this year would not be as bad as 2014 when the industry witnessed an overall drop in sales volume on the occasion of Akshaya Tritiya.

Expectation of a further drop in the prices of the gold is one of the main reasons, which is prompting individuals to do just some token purchases this year, jewellers said. “Overall, the sentiment is little subdued and sales activities are on the lower end of expectations,” said Karan Vasa, associate vice president, Riddhi Siddhi Bullion. “Globally, the yellow metal has lost its appeal as a safe haven asset. The prices of gold are expected to fall further once the US Fed eral Reserve starts increasing interest rates as it will trigger a strong rally in dollar,” Mr Vasa informed.