INDORE: Gold demand from consumers has dipped for the first time since the beginning of the wedding season in April due to a slowdown in urban and rural purchases amid the winding up of the wedding season.
Weddings had kept the gold market throbbing in past months though as the marriage season came close to an end, gold sales saw a drop of around 30 per cent in the retail market despite a 4 per cent dip in the prices of the yellow metal.
Indore Sarafa Association secretary Avinash Shastri said, "Wedding shopping has come to an end and this has led to a drop of around 30 per cent in gold demand from consumers. It's just regular buying happening now."
In Indore, spot gold was priced at Rs 52,400 per 10 grams. In retail, gold had hit a high of Rs 54,800 per 10 grams in the last week of April, according to the sarafa traders.
There are over 2,500 shops in Sarafa of which 837 are registered members of the Indore Sarafa Association. The market generates most of the sales from purchases from the rural customers.
Anil Ranka, president, Indore Sarafa Association said, "Gold demand has come down sharply now and the trend looks weak for the next two months. Now consumers are purchasing gold just for gifting and personal uses. Wedding shopping is almost over."
Jewellers said, purchases from rural areas have also dropped significantly with the start of the kharif sowing season and the pickup is anticipated with the arrival of the new season harvest close to Rakhshabandhan.
Gold is a popular gift given to the bride and groom in weddings and on festivals to close family and friends.
