A forecast that gold prices will decline in the next few weeks is forcing customers to have second thoughts before investing in the yellow metal
Despite a fall in gold prices, many customers in the city are adopting a wait and watch approach before lapping up the yellow metal.
Consumers are of the view that gold rate will fall further, and hence there may not be an immediate increase in the demand for it, Ashok Kumar Gupta, joint secretary of Twin Cities Jewellers Association, said on Sunday.
Rates to decline
Analysts forecast that gold rates will decline in the next few weeks, and it is forcing customers to have second thoughts before investing.
Even jewellers are waiting to know the price fluctuations for the next week before buying gold in bulk quantities, he added.
The actual effect of the drop in gold prices will be felt only from Monday as markets remain closed on Sunday, Gupta said.
However, some jewellery shop owners felt that the current fall in prices would help them to stock up for future demands.
“Currently, sales are a bit sluggish, but with the marriage season about to start in May second week and Akshaya Thritiya approaching, sales might go up, and for us this may be a better time to buy gold,” a jewellery shop manager observed.
The right time
Some customers are of the view that it may be a good time to take the plunge.
“The gold prices may be coming down, but there is severe uncertainty in the market, and it may be a better option to buy gold now,” P. Ravi Kiran, a government employee, said.
“My son’s marriage will be held in May, and a reduction of even Rs. 1,000 is a welcome relief. I will wait for one more day, and if the trend is not encouraging I will purchase gold before it rises again,” he added.