Hyderabad: After lacklustre sales over the last few months, jewellers are finally seeing customer footfalls perk up in the run-up to Dhanteras, buoyed by a correction in prices of gold and silver ahead of the auspicious buying period.International gold prices, which slipped below $4,000 per ounce at the end of Oct this year and moved back above this mark on Wednesday after the US midterm election results, had touched a peak of $5,600 per ounce in late Jan 2026. The surge had pushed domestic 24K gold prices to an all-time high of ₹17,885 per gram. On Wednesday, gold was quoted at ₹14,280 per gram for 24K, inclusive of taxes, in local markets despite higher import duties.Avinash Gupta, vice-chairman, All India Gem and Jewellery Domestic Council (AIGJDC), said customer walk-ins and purchases picked up after prices slid below $4,000 per ounce. He said demand had weakened by nearly 40% over the past six months due to high prices. In May, the Indian govt raised import duty on gold to 15% from 6%, further increasing domestic prices.Gupta now expects Dhanteras sales to be around 15-20% higher in terms of value than last year, supported by lower prices as compared to last Dhanteras. This despite the rupee’s depreciation and a 9% hike in import duty contributing to higher landed costs of the precious metal in India.Surendra Mehta, national secretary, Indian Bullion and Jewellers Association (IBJA), too, is optimistic and expects gold demand this festive season to be 12% higher in volume than last year.He estimates gold sales at 51-52 tonnes this festive season as compared with about 46 tonnes last Dhanteras, and silver sales at around 300 tonnes against 250 tonnes last year festive season. He said lower prices have sent buyers back to showrooms and are encouraging them to make bookings.Gupta of AIGJDC said lightweight jewellery, especially 18-carat products, is gaining traction as buyers seek more affordable options. According to him, 18-carat jewellery can reduce the effective ticket size for customers because of lower gold content and lighter designs. “There is a benefit of about 35% for the buyer, which gives them an edge to purchase,” he said.Pointing out that customers have become more comfortable with current gold rates after seeing higher levels earlier, Darshan Gupta, partner, Mangatrai Jewellers, said customers are back to making bookings and purchases. He said demand is moving away from bullion and coins toward lightweight jewellery and lower caratage pieces ahead of the upcoming Dhanteras and wedding season.He said jewellers are offering discounts on making charges as well as studded jewellery to convert enquiries into sales. Exchange of old gold is also supporting purchases as consumers replace heavier 22-carat designs with 18-carat and 14-carat contemporary jewellery, he added.On silver, Gupta of AIGJDC said investment demand may remain subdued after the sharp volatility in prices, though token buying is expected during Dhanteras.
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