Gold sales in India during the festivals of Diwali and Dhanteras celebrated this week rose by about a fifth, a senior official at the country’s biggest gold trade group said on Friday. Premiums in India, the second biggest buyer of bullion, jumped to $17-$18 an ounce this week, compared with $12 last week, on surging demand. Dhanteras, associated with Lakshmi – the goddess of wealth, and Diwali, the festival of lights, are both considered auspicious to buy gold.
“Diwali sales across the country were very good. It was about 20 percent higher compared with last year,” Bachhraj Bamalwa, director at the All India Gems and Jewellery Trade Federation, told Reuters. The trade body represents more than 300,000 jewellers. The strong demand from India could support global gold prices. “This year prices were low, sentiment was good and we have a stable government in the centre; all of these helped boost sales,” Bamalwa said, referring to this year’s election of Narendra Modi as the prime minister. Though the major gold buying festivals of the year are over, Bamalwa said sales could continue to be strong due to the wedding season that will extend until early next year. In anticipation of strong demand during the festivals, India had imported $3.75 billion worth of gold in September — a 450% jump from the same period last year.
In other parts of Asia, buying interest for gold was quiet, with premiums slipping in some regions, dealers said.
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