Despite high prices, investment demand for gold and silver on the auspicious day of Dhanteras was stronger than expected, with bars and coins leading the demand. Jewellery demand is, however, estimated to be lower by 25-30 per cent.

Surendra Mehta, National Secretary, Indian Bullion and Jewellers Association, said that “in volume terms, we estimate that we will be able to meet last year’s figure of 35 to 39 tons. However, jewellery demand is expected to be lower by 25 – 30 per cent, high investment demand for bars and coins will match the total volume.”

With gold prices over 60 per cent higher than last Samvat and silver 75 per cent higher, there was apprehension in the market, but buyers continued to throng the market. In Mumbai, gold was trading at Rs 1,31,000-1,32,000 per 10 grams

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