Gold prices set to touch Rs 20,000 per 10 grams by Diwali

Aug 29, 2010 |

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Gold prices are all set to touch Rs 19,500-20,000 per 10 grams by Diwali due to rising investor interest, a top industry official said.

"We expect gold prices to cross Rs 19,500-Rs 20,000 per 10 grams by Diwali this year after some correction in prices," Bombay Bullion Associations (BBA) President, Mr Suresh Hundia, told PTI here.

Standard gold (99.5 purity) closed at Rs 18,910 and pure gold (99.9 purity) at Rs 19,000 per 10 grams in the Mumbai bullion market last week.

In New York, gold for December delivery is hovering at $1,237.90 an ounce on the Comex division of the NYMEX.

Gold may reach at least $1,350 an ounce this year as investors seek a shield against financial turmoil, weak currencies and inflation, analysts said.

Indian households are the largest gold consumers in the world. India's bullion demand almost doubled in the first-half of the year, even as prices touched a record high in June.

The forthcoming festive season of Ganesh Chaturthi, Dusshera and Diwali may further fuel gold jewellery demand.

"Gold demand is expected to increase due to forthcoming festival seasons and wedding season," Mr Hundia said.

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