New Delhi: Gold prices are likely to surge further this week to rule over Rs15,000 per 10 grams level amidst a weakening dollar and rising demand ahead of the festival season.
On Friday, October gold on Multi Commodity Exchange ruled at Rs14,965 per 10 grams, touching a high of Rs15,011 per grams. While in the international market the yellow metal ruled at $958 an ounce (28.34 grams).
Analysts say gold is attracting investors as they are expecting the prices to rise further.
The metal is likely to trade at Rs15,400 per 10 grams level this week as the dollar index is indicating a slight weakness, Brokerage firm SMC Global’s Rajesh Jain said.
Among reasons supporting gold’s rise are the growing investment in exchange traded funds or ETFs, and increased demand ahead of the festival season.
Investors returning to the market inspite of the ruling high prices will have positive impact on imports in the second half of the year, Religare Commodity’s Metals and Energy In-Charge Somnath Dey said.
Gold import during the first six months of 2009 was only 51.6 tonnes compared to 139 tonnes during the same period in 2008, according to data given by the Bombay Bullion Association.
Experts feel that high prices mainly kept the investors away from the market.
Karvy Comtrade’s analyst say gold is likely to remain bullish, but it might take a slight correction and pick up again later.
Gold may find resistance at $972 and support at $950 in the international market. In the domestic market the precious metal is likely to find resistance at Rs15,100 and support at Rs14,880, he added.