Surat (Gujarat): Gold jewellers are expecting a surge in sale of gold as people throng shops ahead of the festivals of Dhanteras and Diwali.
Importers in India stocked up on gold in the week preceding key festivals as prices hovered near their lowest level in more than 10 weeks, helped by a weaker rupee.
Indian gold futures are likely to fall past their lowest level in more than 10 weeks over the next fortnight, weighed by a stronger dollar, considered as an alternative to the yellow metal, and falling crude oil prices, but recovering physical demand could help limit the downside.
In India gold reached to rupees 30,905 on Tuesday (November 06).
Traders in Surat witnessed footfall of customers at the shops to purchase the yellow metal ahead of festivals.
"Due to high rate of gold, people like bigger designs, weight is light but design looks big. So, people like light weight jewelleries. Also, we have introduced half gram gold coins. People prefer buying gold at less price, so they can buy half gram gold very often," said a gold trader, Deepak Chokshi on November 5.
Gold buying will peak in India, the world''s biggest buyer of the precious metal, during Dhanteras (festival of wealth) and Diwali next week. Weddings also take place during this period.
Jewellery shops introduce various lucrative schemes with an aim to lure the customers during the festive season.
For centuries gold has held a timeless allure for Indian women, who like to showcase their best jewellery on social occasions like weddings and festivals.
It''s not just the festive season, which is driving people crazy behind gold, but also rising inflation forcing people to invest in safe spots like gold.
Gold can also be bought as an investment in the form of coins and small bars, gold certificates, gold-backed securities or gold-oriented funds, in which investors can buy shares of mining companies.
The customers said that they have already started purchasing gold and are looking forward for some good designs and lucrative schemes in the coming days.
"The rates are very high now days but still I want to take the best thing amongst. I have already purchased some but I am searching more which is something very good," said Nikita Shah, a customer.
India has one of the world's highest savings rates, at over 30 percent - more than double the United States - and the bulk of the nation's USD 800 billion in savings is parked in gold.
India is the world's biggest gold buyer and holds one trillion dollars worth of the precious metal, World Gold Council data shows - more than the combined military spending by the United States, China, Russia and Great Britain.