BackGold may scale ₹30K per 10 gms by Diwali: industry
Gold may scale ₹30K per 10 gms by Diwali: industry
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Mumbai: Gold may witness bullish trend and prices are expected to cross ₹ 29,000 per 10 gram by Diwali, according to the Bombay Bullion Association.
“We expect gold prices to shoot up to ₹ 29,000-30,000 per 10 gram by Diwali due to local demand," Bombay Bullion Association president Prithviraj Kothari told PTI here.
Standard gold (99.5 purity) was quoting ₹ 26,215, while pure gold (99.9 purity) ₹ 26,355 in Mumbai on Saturday.
Brokerage firm Maya Iron Ores chairman Praveen Kumar said, gold will hover around $1,626-1,650 an ounce, with a slightly negative bias due to poor liquidity with investors, while in the domestic market, it will hover between ₹ 25,970 and ₹ 26,460 per 10 gram in the short-run.
Gold will remain range-bound and is waiting for cues from the European markets. Gold prices witnessed extreme volatility in September, following the deepening European debt crisis. Following this, the metal touched a high of $1,923.7 and a low of $1,535 per ounce in September.
However, as the debt crisis got more confounded, there was massive selling, pulling down the prices by a full 11% to $1,634 an ounce by end September, compared to $1,826 an ounce at the end of August.
Another reason for the fall was the US Federal Reserve’s plan to swap shorter-maturity government securities for longer-dated ones failed to enthuse markets, leading to a massive sell-off in all asset classes, including equities and commodities, Indiainfoline commodity analyst Hitesh Jain said.
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