Chirag Sheth of Metals Focus believes gold manufacturers and retailers are now looking at building up inventory on the back of extended wedding season this year.

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“As demand picked up in January and February, there was hope that this will continue in Q2 given the fact that we have got an extended wedding season this time around up till June. So a lot of manufacturers and retailers are now looking at building up inventory,” he said.

“This has led to the phenomenal jump in gold imports that we have seen,” he added.

He expects a bit of slowdown in demand. “We expect a bit of slowdown in the demand given the fact that lot of states and major gold consuming centres are entering lockdown. Also because of elections – whenever elections happen there is a bit of impact on gold demand given the restriction of movement of cash. Probably in April and May we will see a bit of reduction in imports and then pick up in June and July,” he explained.

He does not expect significant improvement in silver imports for another three-four months, he said.

In terms of prices on gold, he pointed out, “We believe that USD 2000 per ounce by end of this year is very much achievable on gold.”

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(Edited by : Aditi Gautam)

First Published:Apr 5, 2021 2:59 PM IST