Press Esc to close
Sunday 21 September 2014
News updated at 11:30 PM IST
Weather
Max: 27.1°C
Min : 20.1°C
In Bangalore
Sunny day

Gold may stabilise at Rs.25,000/10 gm

New Delhi, April 21, 2013 (IANS):

Gold prices, which have crashed almost 20 percent from the record high of Rs.32,500 ($602) per 10 gram last September, are likely to stabilise in the range of Rs.25,000 to Rs.26,000 in the medium term, analysts say.

"I don't expect any major pullback in the medium term. It should stabilise this year in the range of Rs.25,000 to Rs.26,000," Naveen Mathur, associate director for commodities and currencies at Angel Broking, told IANS.

Mathur, however, said in the long term (2-3 years) gold prices were likely to regain their 2012 high.


"Our long-term outlook on gold is bullish. It should go to that level. However, in the near to medium term, there is not much scope," Mathur said.

Gold prices hit an almost three-year low of Rs.25,680 Wednesday, 21 percent down from the record high of Rs.32,500 in September 2012. The price recovered towards the end of the week on the back of retail buying. Gold traded at around Rs.27,100 on Saturday.

The prices crashed this year after 12 consecutive years of gains. Fears of Cyprus and some other debt-ridden European countries selling off gold and liquidations in exchange-traded funds are the primary reasons for the crash in prices.

In the international market, gold has tumbled 28 percent from the record $1,920.30 (Rs.103,565) an ounce (29 grams) in September 2011. It is down about 18 percent so far this year. The yellow metal traded at nearly $1,400 an ounce on Saturday.
According to Goldman Sachs's, yellow metal prices may temporarily drop below $1,200. The bank's 12-month forecast for gold prices is $1,390 an ounce, around the same level towards the end of this week.

The sharp drop in prices is likely to boost the volume of gold jewellery sales, according to India Ratings and Research. Sales volumes had fallen 19 percent between 2010 and 2012, while gold prices had surged around 55 percent during that period.

However, discretionary spending, according to the ratings agency, is likely to be impacted as buyers of gold for investment purposes would postpone their purchases until the gold prices stabilise.

"Operating margins are also likely to be impacted by the decline in prices as some retail jewellers quote making charges as a percentage of raw material cost," India Ratings and Research said.

The decline in crude, gold and other commodity prices are likely to have a positive impact on the Indian economy, especially on the country's trade and current account deficits. It will also help contain inflation and boost growth.

Go to Top

Photo Gallery
Ceremonial elephant Arjuna carries a wooden howdah in Mysore ...

Ceremonial elephant Arjuna carries a wooden howdah in Mysore ...

Sharad Yadav  with President of Socialist Janata (Democratic) Veerendra Kumar ...

Sharad Yadav with President of Socialist Janata (Democratic) Veerendra Kumar ...

Chennai Super Kings Skipper Dwayne Bravo and Ashish Nehra shares a moment during a practice ...

Chennai Super Kings Skipper Dwayne Bravo and Ashish Nehra shares a moment during a practice ...

Ban Ki-moon presents a certificate of honour to Hollywood star Leonardo DiCapriiyo ...

Ban Ki-moon presents a certificate of honour to Hollywood star Leonardo DiCapriiyo ...

Jitu Rai during the 10M air Pistol qualification shooting event at the 17th Asian Games ...

Jitu Rai during the 10M air Pistol qualification shooting event at the 17th Asian Games ...

Women clad in traditional 'ghagra choli' practice the 'Garba' dance in Ahmedabad ...

Women clad in traditional 'ghagra choli' practice the 'Garba' dance in Ahmedabad ...

A bridge that connects Pulwama to Srinagar lays destroyed due to the Jammu and Kashmir flood  ...

A bridge that connects Pulwama to Srinagar lays destroyed due to the Jammu and Kashmir flood ...

Saina Nehwal plays a shot against Korea's Sung jihyun during their Badminton singles semi final ...

Saina Nehwal plays a shot against Korea's Sung jihyun during their Badminton singles semi final ...

Katrina Kaif with Audi India Head, Joe King during the launch of Audi 2015 autumn collection ...

Katrina Kaif with Audi India Head, Joe King during the launch of Audi 2015 autumn collection ...

Katrina Kaif and Hrithik Roshan showcase the Pantaloons limited edition collection in Mumbai ...

Katrina Kaif and Hrithik Roshan showcase the Pantaloons limited edition collection in Mumbai ...

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bangalore - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523