Indian Jewelers Cut Gold Purchases Expecting Price Drops

MMTC-PAMP India Pvt. reports that large jewelry chains in India are reducing gold purchases ahead of the peak demand season. This decline in buying activity stems from an anticipation that gold prices will continue to fall.

Samit Guha, the company's chief executive officer and managing director, noted that the large chains typically responsible for driving the majority of sales have not yet returned to the market. Current buying activity is instead being led by small- and mid-sized jewelers, some of whom are placing repeat orders.