Gold makes a steady start for 2017

Gold and silver were trading flat with marginal gains in early trade on the first day of Calendar 2017 due to lack of global cues amid subdued buying by jewellers, investors and industries.

The yellow metal was trading 0.20 per cent, or Rs 56, higher at Rs 27,501 per 10 gm at around 10.30 am (IST), while the white metal was trading 0.26 per cent, or Rs 103, higher at Rs 39,152 per 1 kg on the Multi Commodity Exchange (MCX).

However, silver declined by Rs 100 to Rs 39,300 per kg owing to reduced offtake by industrial units.

Traders said absence of cues from global markets which are closed, mainly kept gold prices unaltered here.

In the national capital, gold of 99.9 and 99.5 per cent purity ruled flat at Rs 28,300 and Rs 28,150 per 10 grams, respectively. It had lost Rs 200 on the last trading session of 2016 on Saturday.

SMC Investment and Advisors in a research note said, “Gold can move in the Rs 27,300-27,500 per 10 gm range while silver can move in the Rs 38,700-39,400 range in the near term.”

Gold prices eased on Friday as gains from a weak dollar was offset by profit taking at the end of a year in which bullion gained about more than 8 per cent, snapping three years of declines.

Director of RSBL, Prithviraj Kothari is of the view that since Gold prices tumbled to 10-month lows on December 15 after the Fed hiked interest rates, this signaled could be an expected rise in rates more quickly than previously anticipated in 2017.

Gold, jewellery sales spurt up by 30% on Dhanteras

Gold and jewellery sales were up 30 % this Dhanteras, with jewellers across the country recording brisk business on the auspicious day on the back of favourable price and a good monsoon.

Dhanteras is considered to be an auspicious day for buying gold, silver and other valuables and is largely celebrated in North and West India. P N Gadgil Jewellers Managing Director Saurabh Gadgil told PTI that good monsoon, pent up demand of the first half of this year which was affected by jewellers' strike, stable gold prices and long weekend were mainly responsible for the positive consumer demand. World Gold Council (WGC) MD Somasundaram PR said, "The physical demand is good with good footfalls, which is 30-50 % more than last year during this Dhanteras.

"Consumers are back in the market and retailers are all geared up to meet this demand. The level of activity only shows that things have come back to normal in trade as well as at the consumer level," he said. P C Jewellers MD Balram Garg said, "We are seeing 20 % jump in volume and 30 % in value terms. The growth is higher in value terms as prices have gone up in the last one year." This is a conservative estimate, but sales could cross this level, he added. P C Jewellers has around 70 retail outlets across the country. Waman Hari Pethe Jewellers Director Aditya Pethe said looking at the footfalls the sales this year during the festivals are likely to be 20 % more than last year. "The sales have picked up since the last 15 days and we are expecting 20 % growth compared to last year. Rs 30,000-35,000 ticket size is pushing more this year, especially for wearable jewellery. Marriage jewellery are also in demand as the season will begin from December and this year there are more dates than last year," he added.

Gold prices, on Friday, fell by Rs 110 to Rs 30,590 per 10 grams in the national capital. However the prices were 16.6 % higher than Rs 26,230 on Dhanteras day in 2015. Silver traded at Rs 42,700 per kg as compared with Rs 35,410 per kg last year. Kalyan Jewellers Executive Director Ramesh Kalyanaraman said, "The advance booking for jewellery is up by 20-25 % compared to last year." "Prices are lower when compared to last two months. Prices are more or less stable now and also demand has revived in view of the good monsoon," he said. MMTC-PAMP India President (Marketing) Vipin Raina said, "There was robust demand for gold and silver coins as also bars this time as prices are at favourable levels." "People are buying for investment purpose. We expect 15-20 % increase in sales from over the last year," he added.

All India Gems and Jewellery Trade Federation Chairman Sreedhar G V said according to reports coming from across the country northern region has done extremely well and the sales are estimated to have "20-25 % more than last year". "Overall, the retail sales are expected to be 15-20 % more than last year. But, looking at the footfalls, we are expecting 20-25 % growth in the north. The growth in the south is likely to be around 10-15 % compared to last year," he added. The investment demand today is likely to be 2-3 % more than last year, that for light weight jewellery 15-20 % more and diamond 5-10 % more than last year, he said. However, RiddhiSiddhi Bullion Traders Managing Director Prithviraj Kothari said the sales are likely to be 30-35 % less than last year due to the government rule of PAN card on purchase of Rs 2 lakh and over. "The government policy on compulsory PAN card for purchase of Rs 2 lakh and more of jewellery and bullion has become negative for the industry and may result in 30-35 % less sales compared to last year," he added.