Owning to weak demand, Gold prices may decline 50% on Dhanteras

New Delhi: Gold may lose its glitter this Dhanteras as a sharp rise in the prices of the yellow metal has weakened its demand in the domestic market, according to experts.

 "On Dhanteras, the gold sales touch around 40 tonnes every year. However, the weak demand may decrease the sales by 50 per cent this year," Surendra Mehta, National Secretary, India Bullion and Jewellers Association (IBJA) told IANS.

Gold imports have also nosedived due to higher prices and an increase in the import duty, Mehta added. India imported only 26 tonnes of gold in September this year, down from 81.71 tonnes a year ago. The imports fell 68.18 per cent, as compared to last year.

 Market experts believe that gold imports have plunged to a multi-year low after the Central government increased the import duty on precious metals from 10 per cent to 12.5 per cent in the Union Budget in July this year.