Gold will continue to glitter in Dec qtr despite high prices: GJEPC

Gold will continue to shine during the present quarter despite high prices, with its sales likely to grow by 25 per cent for October-December period on account of festive and wedding season demand, expects Gem and Jewellery Export Promotion Council (GJEPC).

Besides, the domestic market for jewellery is expected to reach a level of more than 30 billion dollars by March 2010 from 27 billion dollars year ago.

''We hope to reach 30 billion dollars by March 2010 from the present 27 billion dollars as far as the domestice market is concerned,'' GJEPC Chairman Vasant Mehta told reporters here today.

Asked how had been the sales of yellow metal during the festive season, particularly Diwali, Mr Mehta said the gold is ''still the favourite'' despite rise in prices and compared to last year, there had been a growth of 25 per cent in sales during Diwali.

The growth has been both in value and volume terms, he added.

He said there had a 25 per cent growth in the sales of yellow metal during the first two months of this quarter (October and November), expecting the trend to continue for next month as well.

According to a recent report by World Gold Council (WGC), the demand for gold fell 49 per cent to 137.6 tonnes for July-September period on account of high prices and weak monsoon.

While the jewellery demand dipped 42 per cent to 111.6 tonnes in the July-September from a year earlier, the gold retail investment demand tumbled 67 per cent to 26 tonnes during the period.

However, the total demand in the July-September period was 26 per cent higher than previous quarter, with 17 per cent risein jewellery demand (quarter-on-quarter) on account of seasonal factors, the Report said.

In the third quarter of 2009, domestic gold prices rose by about nine per cent. At present, the gold prices are touching the Rs 18,000 per ten gram level.

-- (UNI) -- 25DC10.xml

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