Mumbai, Aug. 29: Gold prices are all set to touch ` 19,500-20,000 per 10 grams by Diwali due to the rising investor interest, a top industry official said.
“We expect gold prices to cross `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, said.
Standard gold (99.5 purity) closed at `18,910 and pure gold (99.9 purity) at ` 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.
“Gold prices continue to appreciate in the international market, with prices touching multi-week highs in dollar and euro terms. This is also due to concerns about the health of the global economy and the double dip recession fears, which has made gold an attractive investment,” senior research analyst, Mr Basant Vaid, said.
Demand for gold in India rose by 94 per cent to 365 tonnes in H1, 2010, compared to 188.4 tonnes in H1, 2009, clearly indicating that there has been a rebound in demand. In value terms, India’s gold demand grew from `27,300 crore in H1, 2010, to `60,500 crore in the year ago period.