The price of gold, which is on an unrelenting upward spiral, is expected to touch Rs 35,000 per 10 gm, market experts say, and the price is is expected to remain so till the end of the year. Gold is in great demand during the upcoming festival season and hence the ever-increasing price. Also, as the yellow metal’s price has risen continuously over the last few years, gold has emerged as the all-time favourite of investors. Gold coins, biscuits and bars continue to do brisk business.
Incidentally, rates of gold in branded jewellery outlets differs by around Rs 1,000 as value added tax and charges are applicable to jewellery as well as coins and biscuits. Gold traders are expecting a small correction in price in the next two weeks, but the trend will be upwards. Despite the continuous increase in gold rates, there is not much fluctuation in demand as most of the demand is fuelled by investment-related purchases. “Every time there is a rise and the gold price jumps to the next thousand mark, customers refrain from buying for a day or two, but are back to normal after absorbing the shock,” said a jewellery shop owner at General Bazaar.
“The increase in the gold price is due to smuggling as the state government’s hike in the excise duty has led to an increasing number of NRIs trying to encash the difference in the price. Even central banks are buying gold from different cou-ntries as they are also inve-sting in gold. The trend will be bullish and even if there is a correction in the next two weeks, prices may stabilise around Rs 30,000 per 10 gm for now. By the end of the year the price can easily cross the Rs 35,000 mark,” said Mohanlal Gupta, advi-ser to the Twin City Jewe-llers Association and Gove-rning Board member of the GJTF.