Sales are likely to gain momentum on Dhanteras and the upcoming wedding season in November.
With the festive season around the corner, gold sales started the week on a on a positive. Dhanteras will be celebrated on October 25 -- the first day of Diwali -- and jewellers are already seeing improved sales given that customers started taking physical deliveries on Guru Pushya Nakshatra, which commenced on October 21 and will conclude the following day.
Kumar Jain, Vice President, Mumbai Jewellers Association told Moneycontrol that daily sales of the precious metal had fallen by 50 percent compared to last year, but jumped to 75 percent on the auspicious day as gold prices gained 22-25 percent and wee trading at Rs 38,300.
Sales are likely to gain momentum on Dhanteras and the upcoming wedding season in November, Jain added.
Gold prices were marginally down by Rs 30 at Rs 38,300 per 10 gram in the Mumbai bullion market on weak overseas cues.
In futures market, gold rates touched an intraday high of Rs 38,090 and an intraday low of Rs 37,989 on MCX as trading resumed following the Maharashtra assembly elections at 5 pm. For the December series, the yellow metal touched a low of Rs 32,289 and a high of Rs 40,771.
Gold futures for delivery in December eased by Rs 101, or 0.27 percent on MCX, trading at Rs 37,988 per 10 gram in evening trade in a business turnover of 18,862 lots. Gold contracts for February delivery slipped by Rs 114, or 0.30 percent, at Rs 38,260 per 10 gram in a business turnover of 3,465 lots.
The value of the December contract traded so far is Rs 1,654.17 crore and February contract saw value of Rs 21.83 crore.
Similarly, Gold Mini contract for November was down by Rs 63, or 0.17 percent at Rs 38,058 in a business turnover of 9,663 lots.At 11.05 am, spot gold was marginally down by $1.32 at $1,488.38 an ounce in New York.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.