All India Gem and Jewellery Domestic Council (GJC) Chairman Rajesh Rokde told news agency PTI the correction in gold prices had improved consumer sentiment and was likely to support demand during the festival.
Gold was trading at around Rs 1.10 lakh per 10 grams during the corresponding period last year. Its price had climbed to Rs 1,62,900 per 10 grams on May 29 before falling by Rs 20,900, or 12.8%, to Rs 1,42,000 on October 31.
The metal was trading at Rs 1,46,600 per 10 grams on Wednesday, up Rs 4,800 from the previous session’s closing level.
Rokde said the industry expected sales volumes to remain largely flat compared with last year, although sales value could increase by 20-30%. He added that inflation, geopolitical tensions and the drought-like situation in Maharashtra could affect consumer sentiment.
However, he expects the impact of inflation on bullion purchases to be limited because buyers generally use their savings to purchase gold.