Contrary to the general trend witnessed on Akshaya Tritiya, prices of gold and silver plunged on Friday, an auspicious day in Hindu calendar, and jewellers said it was mainly due to external factors.

The spot price of 24 carat gold was quoting at Rs.29,970 per 10 gram in Mumbai’s Zaveri Bazaar as compared to Rs.30,150 on Thursday, down Rs.180. According to jewellers, the price of gold has fallen by nearly Rs.1,000 in the past five to six days.

Similarly, silver prices dropped by Rs.41 a kg on Akshaya Tritiya day. On Friday, silver was quoting at Rs.42,259 against Rs.42,300 a kg a day before, jewellers said.

Gold future price was also tended lower. MCX gold future price was down Rs.35 at Rs.28,545 (10 gram) while silver future was quoting at Rs.41,240 a kg, up Rs.334.

Last year, on Akshaya Tritiya day, gold price had suddenly plunged to Rs.26,825 and over 20 tonnes of gold worth Rs.600 crore was sold, said jewellers. This year, consumption can only be known on Saturday.

According to experts, internationally, gold prices are falling due to encouraging economic data emanating from the U.S. and the U.K. where fund houses and other investors are off-loading gold in huge quantity. This has affected gold prices, they said.

“Gold prices in India are determined by international trend and any festive demand in India can’t make any major difference in pricing. Currently, gold is under pressure internationally as it is no longer a safe haven investment option. Besides, the Indian rupee has appreciated against the dollar and this helped in softening of gold prices in India,” said Pramit Brahmbhatt, CEO, Veracity Financial Services that deals in bullion among others.

He said that this year the demand for gold was less in India as compared to previous years.

Anticipating this almost all leading jewellers had announced different schemes to lure gold buyers and footfalls had increased as compared to normal days, reported jewellers.

“We are having a packed day today and people are buying jewellery and coins. This year light weight jewellery is in demand and coins of 5 gram and 10 gram are being sold in large numbers. Most people had not bought gold during Dussehra, Dhanteras and Gudi Pawda and thus there was pent up demand today,” said Kumar Jain, Vice President, Mumbai Jewellers’ Association.

He said people were buying gold as the marriage season would be approaching in two months. Several jewellers were offering 5-10 per cent discounts on making charges. Reliance Jewels was offering Rs.111 discount on gold prices and a flat 15 per cent discount on diamond jewellery. There were also offers from Tanishq and Waman Hari Pethe, some of the city’s leading jewellers.

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