Jewellers predict gold price to surpass Rs 33,500 mark per 10 gm by Diwali

Source: The Hitavada      Date: 14 Sep 2018 10:05:00


 

 

Business Bureau

While the rupee is tumbling against dollar and crude oil prices are rising every passing day, gold prices appear to be showing no proportional increment which is eventually developing a sense of confusion among those who are forecasting price of the yellow metal. Some believe that the gold prices would witness hike of about Rs 2,000 to 2,500 per 10 grams in next two months, while others are not so much bullish on it.


Jewellers, who are very optimistic about the gold prices, observed that the price would surpass Rs 33,500 per 10 grams mark during Diwali, the festival which is two months from now.


Nitin Khandelwal, Chairman of the Gem and Jewellery Domestic Council said, the demand for gold would see significant jump in coming days which would drive the prices.


“India has seen satisfactory monsoon in the current season. Apart from this, being an election year, we believe that Government will announce more policies which is expected to increase purchasing power of the citizens in coming days. Considering this, I believe that gold price will surpass Rs 33,500 mark very soon,” he said adding that it is good opportunity for the buyers to invest in gold.


Kishore Dharashivkar of Nagpur Sarafa Association said that the prices may go up by Rs 1,500 to Rs 2,000 per 10 grams. “We have been receiving satisfactory reports about agriculture produce. It is going to create good demand for gold in the domestic markets. Further, the wedding ceremony season which will kick-start from Diwali will also generate demand for gold,” he said.


However, CA Kailash Jogani, Past President of Nagpur Chamber of Commerce Limited (NCCL) said that the demand of gold in India is on decline. “As there are many options available for citizens to invest money, number of gold buyers is falling in the current scenario. Investment in gold is no more a top priority of Indians. “Similarly, the traditional buyers are also not buying enough gold these days because of which the demand for the valuable metal has dipped and so are the prices,” he said.


Jogani said that gold may not see considerable price hike in coming days. “There are various factors that come into play when it comes to deciding gold prices. Most of these are international factors and are complex in nature. And thus saying that gold prices would gain significantly during Diwali is not very apt,” he clarified. According to Jogani, gold prices may see normal hike of Rs 1,000 to Rs 1,200 per 10 grams in next two months. Another expert, who refused to be quoted, said that many countries have
been selling gold in the international markets.


“Huge quantity of gold is available in the international markets and hence prices are showing no improvement. Despite of the fact that rupee has slipped significantly, gold prices failed to improve in that proportion. It shows that possibility of hike in gold price is very thin,” he added.