Gold prices are declining since past 10 days and have reached around Rs.17, 100 per 10 grams which is 8 percent down from earlier months. Gold prices soared after Diwali and touched an all time-high of Rs.18, 300 per 10 grams during early December. Major markets such as Mumbai and Ahmedabad witnessed more than 50 percent decline in retail sales in the past 15 days.
Retail sales of gold have continued to drop as prices of essential commodities have also shot up considerably and kept middle-class customers away from gold. As there are no auspicious festivals this trend is expected to continue for another month or two. The only respite for gold retailers is customers who are forced to buy because of personal reasons such as marriage in the family. Due to drop of prices in the past few days the bulk traders purchased gold which helped the gold business to some extent. Though many retailers have come up with interesting schemes and offers to encourage customers to buy gold, there are no takers for these offers. The customers are on the wait and watch approach expecting the prices to come down further during the coming months.
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