Gold industry prospects drop amid 25% price surge, impacting India's festive season purchases.

A rise in gold prices has diminished prospects for India's gold industry during the festive season, traditionally a peak buying period. Despite a recent reduction in import duties aimed at boosting sales, prices have surged over 25% since last year, leading consumers to seek lighter, more affordable jewelry. Demand is expected to drop by 20% compared to normal volumes, with dealers lowering premiums to encourage purchases. India's gold imports fell significantly in September.