The demand for gold in the country has strengthened during the great festival of Dhanteras. A senior MMTC-PAMP official said this on Tuesday. According to the official, the market is bright due to the recent reduction in import duties and traditional purchasing pattern. According to PTI News, MMTC-PAMP Managing Director and CEO Vikas Singh said that with the continued demand for our pure gold products, the market sentiment for gold remains strong this Dhanteras season.
Effect of reduction of import duties
According to the news, the official said that the reduction of import duties from 15 percent to 6 percent has led to an increase in purchases during the festive season as consumers prefer high purity gold products. Singh said customer preference for quality and purity remains a key factor in purchasing decisions, especially for our 24-carat gold products with purity greater than 99.99 percent. Singh said the positive momentum is expected to continue into the upcoming wedding season, which traditionally accounts for about half of India’s annual gold consumption.
The market also relies on cultural practices
According to MMTC-PAMP, beyond seasonal factors, gold demand also benefits from cultural practices that take place throughout the year. Traditional rituals during birth and naming ceremonies, which can take place at any time of the year, continue to increase the value of this precious metal due to its importance and consideration as a blessing. India is one of the world’s largest consumers of gold, and its demand is driven by cultural and religious factors and investment considerations.
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