MUMBAI (Commodity Online): With Diwali round the corner, India’s bullion traders are busy stocking up gold for the festival rush. This mad rush to store gold has resulted in a prices rise in international market.

And to add to that the World Gold Council (WGC) organized a month-long event Great Indian Gold Rush to promote sales. This has resulted in a huge rise in sales for the retailers, who in turn booked more gold for the festival season, causing a price rise.

During the WGC event, consumers were eager to book as much as they could before any further rise in prices. Gold being an investment, higher prices have never been a barrier for Indian consumers.

Any sudden price spurt does affect gold consumption for a short period. But the yellow metal has corrected in the domestic market in the last couple of days, which has boosted consumer sentiment. There was also good support from the ongoing marriage season.

Gold slipped 2.14 per cent in the last one week from Rs 15,865 per 10 gram to Rs 15,525 per 10 gram. Retailers like Mumbai-based Tribhovandas Bhimji Zaveri (TBZ) who participated in the event saw over 30 per cent rise in sales during Dussehra.

Started on September 19, the event is on in Mumbai (65 shops), New Delhi (70 shops), Bangalore (25 shops) and Vidarbha (20 shops). The festival will end on October 18. It begins in Kolkata on October 2. Public sector Metals and Mineral Trading Corporation (MMTC) Ltd also organised a 10-day gold festival at its 17 stalls in New Delhi along with participating in Gold Rush. The company’s sales rose 15-20 per cent during the period.

Encouraged by consumers’ enthusiasm, MMTC is planning organise a similar sales event between October 5-15 across its retail points in New Delhi, Chennai, Kolkata, Bangalore and Hyderabad.