Jewellery stocks are in focus on Thursday, 5 November, amid renewed buying interest ahead of Dhanteras, as a sharp recovery in gold prices lifts sentiment towards the sector. Gold prices have rebounded after correcting nearly 12% over the past six months, offering some relief to investors and raising expectations of a recovery in jewellery demand during the festive and upcoming wedding seasons.
According to a Reuters report, spot gold climbed 1.9% to $4,134.83 per ounce by 0316 GMT on Thursday, hitting its highest level since 22 October. US gold futures for December delivery advanced 1.8% to $4,144.20 per ounce. The latest recovery followed a 3.4% surge in spot gold in the previous session, its biggest single-day gain since 19 August.
According to experts, the rebound was driven by a weaker US dollar and declining US Treasury yields following the Democratic Party's strong performance in the US midterm elections. A softer dollar makes gold more affordable for overseas buyers, while lower bond yields improve the appeal of the non-interest-bearing metal.
The recovery in bullion prices comes ahead of Dhanteras, when gold purchases traditionally gather momentum. The World Gold Council (WGC), in its latest quarterly outlook, said the festive and wedding seasons are expected to support gold demand, while continued central bank purchases could provide further support to prices over the next 12 months.
Against this backdrop, jewellery stocks such as Titan, Kalyan Jewellers, Sky Gold, P N Gadgil Jewellers, Senco Gold, Shanti Gold, Shringar House of Mangalsutra, Tribhovandas Bhimji Zaveri, Khazanchi Jewellers and Lalithaa Jewellery Mart are trading higher in Thursday's session.