Salient to Investors:
The festival season in India, the world’s biggest gold consumer, runs from August to October and the wedding season runs from November to December and from late March through early May.
Gaurav Mehta at Ambit said the fall in gold should alleviate to a significant extent one of India’s key problems, the current-account deficit, which can pave the way for lower interest rates.
Paras Bothra at Ashika Stock Broking said the drop in gold prices will positively impact the companies which are into retail as higher gold prices were a deterrent to buyers – there is much pent-up demand.
Haresh Soni at All India Gems & Jewellery Trade Federation said people are expecting prices to drop more as sentiment is weak and selling pressure remains.
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