New Delhi: Despite a dip in economic activities, the gold sales on Dhanteras exceeded expectation as it was recorded to be around 30 tonnes, according to reports. Gold sales in the past few years used to be around 40 tonnes, but this year the bullion merchants didn’t pin their hopes high and predicted the sales to be around 20 tonnes, the Indian Bullion and Jewellers Association said.

“We didn’t expect this much sales because the demand for gold in the domestic market was down due to high prices,” Surendra Mehta, the national secretary of Indian Bullion and Jewellers Association, said to IANS.

In past one year, gold prices have gone up — from Rs 32,000 per 10 gms to Rs 39,680 per 10 gms.

“The gold prices in the domestic bullion market are high due to the soaring prices of gold in the international market and an increase in import duty on expensive metals in India. Therefore, the demand for gold was expected to be less when the festive season started, but due to the improved buying trends in the last three-four days, gold sales were recorded to be 30 tonnes on Dhanteras,” Mr Mehta added.

However, there was a 25 per cent dip in the gold purchase compared to last year.

The government has increased the import duty on expensive metals to 12.5 per cent from 10 per cent so as to reduce the import of gold due to which the precious metal became expensive in the country.

Gold prices are ruling at around Rs 39,000 per 10 gram on this Dhanteras, as against Rs 32,690 per 10-gram on the same day in 2018. In spot markets, prices of 24 Karat gold in Delhi rallied ₹220 to ₹39,240 per 10 gram while silver rates surged Rs 670 to Rs 47,680 per kg.

In Mumbai, gold price stood at Rs 38,755 per 10 gram today compared to the previous close of Rs 38,450.

(With Agency Inputs)