Gold to retain sheen despite global jerks

For gold traders in India good days are around the corner. In the last fortnight, gold jewellery sales have increased 25 to 30 per cent in India. 

Traders said, the fall in gold prices have once again turned buyers to gold jewellery, the sale of which was hit in the last two years by the import duty imposition on yellow metal.

An industry study too has said that despite a bearish outlook being attached to gold in the international market after rising global confidence in US dollar as an alternative asset class, prices of the yellow metal will remain steady in India in the next three to six months. 

It will oscillate between Rs 26,600 and Rs 27,900 per ten grams.

“India, is in the middle a festival season. This coupled with the wedding season in winter will keep the retail demand quite steady, even when the global investors tend to shuffle investment in the US financial  markets with collateral impact the financial markets of the emerging economies,” the ASSOCHAM  study said.

According to the paper, though gold is losing ground in the international market with prices falling even below $1200 per troy ounce, the impact on Indian market will be somewhat neutralised by the commensurate strength in the US dollar which is on the rise against all international currencies, including Euro, Pound Sterling and Yen. 

Gold jewellers in Delhi maintained that the festive season with Dusshera, Durga Pooja, Diwali and then going up the Christmas and new year will induce the Indian retail customers and investors to buy gold.