Gold buyers flock to shops despite high prices

Gold prices may be scorching at an all-time high of Rs 16,000, but it has failed to keep away jewellery buyers from making purchases ahead of the festive and marriage seasons in anticipation that the rates may shoot up further.

"The retail sales as well as the bookings for the wedding season have gone up as people, who were holding back on expectations of fall in prices, started purchasing thinking it might go up further as the season progresses," Mumbai-based P M Shah Jewellers' Dinesh Jain told PTI.

According to Jain, there is great excitement in the market. People have been purchasing the precious metal even during the 'Shradhh', an inauspicious fortnight according to Hindu mythology, which will end on Friday, he added.

The gold prices on Thursday ruled at Rs 15,944 per 10 grams in the domestic markets and in the global market it was at $1,022 an ounce (28.34 grams).

All India Gems and Jewellery Association chairman Ashok Minawala said, there is a change in mindset of people, who have shown their confidence in gold as an ornament as well as an investment option.

"In the first quarter of this year the jewellery sales have been slow, but since then the demand has picked up and is likely to remain positive till the rest of the financial year," he said.