Mumbai: Gold prices, which touched a record high last week, could witness some correction by the end of November, an industry official said.
“Gold may witness some correction amid high volatility. Gold prices may hover around Rs12,000-13,000 per 10g by November-end,” industry expert Bhargav Vaidya said.
The high prices of gold have severely hit the demand for coins and bars in India. “We have witnessed poor demand due to high prices this festive season. Demand will increase only if prices start easing,” he said.
There have been no buyers though gold is being sold at a $40 (Rs1,948) discount to the landed price in the spot markets, Bombay Bullion Association’s president Suresh Hundia said. There are only sellers in the market.
“The higher prices attracted a lot of sellers, mainly holders of small quantities of jewellery and bars,” gold analyst Amit Zaveri said.
Both gold and silver nosedived after the rally on Saturday as investors booked profits to pare losses arising due to the steep fall in world equity markets. Standard gold (99.5 purity) tumbled Rs665 per 10g to Rs13,440 from Rs14,105 on Friday and pure gold (99.9 purity) also dropped to Rs13,500 from Rs14,160.
Gold and silver plummeted in New York on Friday after Wall Street posted another big loss and forced investors to dump holdings in precious metals. Gold dropped as much as 9.6% on Friday, reversing sharp gains as a wave of panic prompted investors to dump assets across the board to meet liquidity needs.