The India Bullion & Jewellers Association upgraded its festive sales volume growth projection to as much as 12% year-on-year, showing that buyers are undeterred by higher rates. The price surge occurred after US midterm election results pointed to Democratic control of Congress, curbing legislative momentum and weakening the dollar. Although international factors are boosting bullion, domestic retail rates remain tied to the Indian rupee's valuation against the dollar. If the rupee weakens further, local gold prices will remain elevated regardless of broader global market corrections.
Key points
Festive gold demand in India remains highly resilient despite notable price increases acr…: Festive gold demand in India remains highly resilient despite notable price increases across retail jewelry markets.
Changes in the United States balance of power have weakened the dollar and altered global…: Changes in the United States balance of power have weakened the dollar and altered global bullion pricing dynamics.
Domestic price trends will depend on whether the Indian rupee can maintain its strength a…: Domestic price trends will depend on whether the Indian rupee can maintain its strength against the US dollar.
Sources checked by our analysis pipeline: 1
In India, 24-karat gold was trading at ₹14,280 per gram, up from ₹13,964 on Tuesday, a rise of 2.26%.
The rally comes just days before Dhanteras, when gold purchases are traditionally expected to pick up across the country. While higher prices could weigh on affordability, jewellers expect demand to remain firm, with the US election outcome adding to positive sentiment around gold.
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Gold sales volume this Dhanteras could rise by as much as 12% year-on-year, as demand has held up over the past 7-10 days and buyers may bring forward purchases despite rising prices, Surendra Mehta, national secretary of the India Bullion & Jewellers Association (IBJA), told ET Online.
IBJA has raised its sales growth estimate to as much as 12% from its earlier projection of 7-10% following the US election results.
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A softer dollar and declining Treasury yields triggered by shifting political dynamics in Washington have revitalized foreign capital inflows into emerging economies. Indian benchmarks responded by stretching their current winning streak, bolstered by widespread accumulation across midcap and smallcap counters. Meanwhile, precious metals witnessed significant relief rallies as non-yielding assets capitalized on the retreating greenback.