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Friday, 22nd September 2006 (5779 views)

Gold retailers in India are reporting significant increases in jewellery sales as the festive and holiday season approaches, which they believe has been partly fuelled by the falling price of the precious metal.

Autumn is traditionally a strong season for gold purchases as the Hindu festival of Diwali dominates the calendar.

The festival of Dussera is also just a matter of days away now and the normally slow period of the Shradh season, which falls just before and is relatively inauspicious, has been remarkably busy, according to one retailer.

"I don't think I have seen so much rush during Shradh earlier," a saleswoman working for a leading retailer at the auspicious gold trading hub of the Zaveri Bazar told India's Financial Express.

The retailer did warn, however, that people may be buying now because they feared prices would rise after Shradh had finished.

However, a continued slump, with prices maintaining a level below $600 an ounce, may prolong the boom, analysts noted.

 

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