New Delhi, Oct. 31: Gold is likely to be expensive by 24 per cent to over `20,000 per 10 gram in the national capital on Dhanteras, a day considered auspicious for buying the precious metal, as compared to year-ago period, according to the Delhi Bullion Market.
Gold prices were ruling at `16,200 per 10 gram and `12,070 per 10 gram on the Dhanteras day in 2009 and 2008, respectively, the trade data showed.
Presently, gold prices are ruling firm at `19,925 per 10 gram, almost close to the record level of `20,120 set on October 15.
“Prices of the precious metal have been on the rise in the last couple of months and on the Dhanteras day, too, gold may further firm up to over `20,000 per 10 gram,” Delhi Bullion Mar-ket president, Mr Surender Jain, said.
The current rally in gold prices is more due to global cues than the domestic demand, which is expected to be normal on November 3 — the Dhanteras day, when jewellers register the highest gold sales in a year, he said.
“High prices may deter the buyer’s spirit to buy gold in big volumes, but demand would definitely be there for gold coins in smaller denomination,” Chandni Chowk Jewellers Assoc-iation secretary, Mr Bishan Seth, said.
However, gold rates are unlikely to decline below `19,500 per 10 gram in the short-term considering uncertainty in the currency market and performance of other assets in the global market, he observed.
The World Gold Council, which represents leading gold mining firms across the world, said in its latest report that it would expect the demand for the yellow metal to pick up further in the fourth quarter of this year on the back of the main festive season.
The prices of the precious metal have risen currently by more than four folds from `4,500 per 10 gram on the Dhanteras day in 2000.