Gold prices soar

Gold prices have been steadily rising and has reached a new high of Rs 30,864 per sovereign. Due to this, retailers are worried about Deepavali sales. Since the beginning of this year, there has been a demand for the yellow metal. People are opting for jewelry and there is little demand for gold biscuits and gold coins. While the rate of 22 carat gold is Rs 3680 per gram, the rate for 24 carat gold is Rs 3858 per gram.
However since May, there has been a decrease in sales due to the sharp rise in prices. Retailers are hoping that the festival season of Deepavali will boost sales. According to World Gold Council,(WCG) report, India’s Gold Market, Evolution and Innovation, Indian gold demand is expected to average 850 tonnes to 950 tonnes per annum by the year 2020. Currently it is estimated at 760 tonnes.