If the sluggish sentiment prevails this will be the second consecutive year of poor sales.
In 2017, the Dhanteras season saw sales plunging more than 30 per cent over the 2016 levels when sales were reasonably good as the note ban was announced post Diwali.
But last year was one of the worst for the industry in recent years as it was after the note ban and GST implementation coupled with tighter KYC norms for high value purchases.
"I am not expecting good business this 'Dhanteras' as the consumer sentiment is not so good due to lack of liquidity in the market.
"I am expecting sales to decline by 5-10 per cent from last year or at best to be at par," All India Gem & Jewellery Domestic Council (GJC) chairman Nitin Khandelwal told PTI.
Bullion prices have been heading north for quite some time now, which is also deterring people to buy gold, he added.
Dhanteras is considered to be an auspicious day for buying gold, silver and other valuables and is largely celebrated in northern and western parts of India.
Last year, gold prices were ruling a little over Rs 30,000 per 10 gram during Dhanteras.
Domestic gold prices closed at Rs 32,550 per 10 grams Saturday, while globally it closed at USD 1,233.80 an ounce in New York on Friday.
Reiterating Khandelwal's view, former GJC chairman Manish Jain said the business was badly impacted during the Dussehra festival, which has set the tone for Dhanteras and Diwali, generally considered auspicious for buying the yellow metal.
"We are hoping the industry at best matches sales at the last year levels. However, looking at the current sentiments we expect it may even be slightly lower than that of last year," he added.