Gold sales have remained sluggish despite the Tihar festival and Dhanteras which is considered to be an auspicious day for buying precious metals as people are more concerned about daily essentials.

Jewellers said that low vehicular movement due to the fuel shortage caused by the Indian blockade had also dampened the festive buying sentiment.

Although huge crowds were seen at some gold shops, bullion traders said that footfall was 20-30 percent less compared to previous years.

Many gold shops have launched discount offers on jewellery making charges to entice consumers. The offers will run till Laxmi Puja which occurs on November 11. Dhanteras, which was celebrated on Monday, marks the beginning of Tihar when buying gold is a popular custom.

“Business on Dhanteras was 30 percent less compared to last year. It seems people have put off plans to buy gold and silver as prices of daily essentials have gone up and there is an acute shortage in the market,” said Tej Ratna Shakya, proprietor of Tejmin Jewellery at Pyukha, New Road. Shakya that the Indian blockade and earthquake had dampened their business this year. “Dhanteras is the day when demand surges if we talk about previous years as people customarily celebrate this festival by purchasing gold and silver in the form of coins, rings, chains and other accessories,” said Shakya, adding that sales had not increased despite a fall in prices.  Gold prices have been on a downward trend in recent days in line with international markets. The yellow metal was traded at Rs49,100 per tola on Monday while it cost Rs51,500 per tola a week ago. Silver has also decreased to Rs700 per tola from Rs715 a week ago.  “Demand was very slow till yesterday, but it has started picking up with the start of the Tihar festival, and we hope that sales will swell by the day of Laxmi Puja,” said Manish Pradhan, proprietor of Asri Jewellers, Durbar Marg.