<p>The price of the precious metal reached a seven-month high of Rs 15,780 per 10 grams in the domestic markets on September 3 2009. On the same day, it also touched an almost seven-month high of $ 999.5 an ounce (28.34 grams) in the global markets.<br />“Expectations of further weakening of the US dollar on signs of economic recovery and rising investor demand for gold will further boost prices and the precious metal may touch a historic high of Rs 17,000 per 10 gram levels in two to three weeks weeks’ time in the domestic market,” according to brokerage firm Bonanza Commodities Vice President Tarun Satsangi.<br /><br />However, in the short term , that is the next seven to ten days, gold price in the domestic markets is expected to reach 16,500 per 10 grams level or $ 1,080 an ounce in the international market, he said.<br />India has crossed the Rs 16,000-psychological level several times before, but touched an all time high of $ 1,032 an ounce on May 2006.<br />Other lucrative markets, like the equity and metal markets which have been giving good returns so far, now heading for a correction, is likely to force people to park their money in gold, which in turn will boost its prices further. Echoing Satsangi’s view, Religare Commodities Metals and Energy In-Charge Somnath Dey said expectations of domestic demand on the onset of festive season will add to the prices.<br /><br />The yellow metal may trade around Rs 16,200 per 10 grams in the domestic and around $ 1,010 an ounce in the international markets in the short-term, he added.<br />Geojit BNP Paribas’ Anand James said a plethora of data released during the last week accounted for the current positive trend in gold.<br />However, this uptrend in gold prices may affect domestic jewellry business, which may hurt imports, he added.<br />Experts believe that the prevailing high prices have prevented people from purchasing the precious metal, especially after drought triggered fears of a dent in rural income.<br />Poor rains this year have raised fears of a slump in farm output affecting rural income, as over 60 per cent of India’s population still depends on agriculture for livelihood.<br />Gold was today trading at Rs 15,725 per 10 grams on the MCX counter, while in the international market it was at $ 994.90 an ounce.</p>
<p>The price of the precious metal reached a seven-month high of Rs 15,780 per 10 grams in the domestic markets on September 3 2009. On the same day, it also touched an almost seven-month high of $ 999.5 an ounce (28.34 grams) in the global markets.<br />“Expectations of further weakening of the US dollar on signs of economic recovery and rising investor demand for gold will further boost prices and the precious metal may touch a historic high of Rs 17,000 per 10 gram levels in two to three weeks weeks’ time in the domestic market,” according to brokerage firm Bonanza Commodities Vice President Tarun Satsangi.<br /><br />However, in the short term , that is the next seven to ten days, gold price in the domestic markets is expected to reach 16,500 per 10 grams level or $ 1,080 an ounce in the international market, he said.<br />India has crossed the Rs 16,000-psychological level several times before, but touched an all time high of $ 1,032 an ounce on May 2006.<br />Other lucrative markets, like the equity and metal markets which have been giving good returns so far, now heading for a correction, is likely to force people to park their money in gold, which in turn will boost its prices further. Echoing Satsangi’s view, Religare Commodities Metals and Energy In-Charge Somnath Dey said expectations of domestic demand on the onset of festive season will add to the prices.<br /><br />The yellow metal may trade around Rs 16,200 per 10 grams in the domestic and around $ 1,010 an ounce in the international markets in the short-term, he added.<br />Geojit BNP Paribas’ Anand James said a plethora of data released during the last week accounted for the current positive trend in gold.<br />However, this uptrend in gold prices may affect domestic jewellry business, which may hurt imports, he added.<br />Experts believe that the prevailing high prices have prevented people from purchasing the precious metal, especially after drought triggered fears of a dent in rural income.<br />Poor rains this year have raised fears of a slump in farm output affecting rural income, as over 60 per cent of India’s population still depends on agriculture for livelihood.<br />Gold was today trading at Rs 15,725 per 10 grams on the MCX counter, while in the international market it was at $ 994.90 an ounce.</p>