Gold prices are on a free fall over the past few days even as Dhanteras, the festival when it is considered auspicious to buy gold and silver articles, is barely 20 days away. Gold prices have crashed from Rs 31,520 per 10 gm on Tuesday (October 4) to Rs 30,240 on Saturday (October 8) or Rs 1,010 per 10 gm in four days.
Silver prices too have dropped significantly during the period, from Rs 45,000 per kg on Tuesday to Rs 42,300 on Saturday. However, the metal gained Rs 370 on Saturday, while gold lost further ground and closed with a loss of Rs 80 per 10 gm.
The fall in gold prices is being attributed to weak demand, both by jewellers and customers, notwithstanding analysts and companies confident of higher sales as a result of the pay hike for Central government employees on implementing the proposals of the 7th Central Pay Commission (CPC) and a good monsoon that augurs well for a spurt in rural demand for the yellow metal.
Dhanteras, the festival associated with buying gold and silver, falls on October 28 this year.
The fall in gold and silver prices could prove to be a trigger for value-buying by customers around the festival. Gold business in India is marked by listed and unlisted companies as well as family-owned shops.
Listed firms include Titan (share price closed at Rs 395.10 on Friday), PC Jeweller (Rs 484.80), Gitanjali Gems (up 15.05 per cent at Rs 83.70) and Tribhovandas Bhimji Zaveri (up 6.58 per cent at Rs 76.15).