Gold prices may drop to Rs 28k/10 gm

Hyderabad: With prices dropping slightly since Diwali, traders expect sales of gold to go up.

The price of gold has dropped by Rs 1000 per 10 gm since Diwali and is expected to fall below Rs 28,000 from the current Rs 31,000 per 10 gm of 24-carat gold, said experts.
The prices had touched Rs 32,000 during the festive season and sales had been dull.

The trend had been the same for the last six to seven months and customers had been shying away from buying the yellow metal. Gold merchants, however, are now hoping that sales will pick up as prices are expected to dip sharply over the next one month.

“Although gold prices have corrected over the last one week, there is no rush in the showrooms yet. We do expect sales to pick up slowly although we don’t think it will be a rush as even the festive season was dull,” said adviser to Twin Cities Gold Merchants’ Association, Mohanlal Gupta.

Though the rates have fallen, experts say that a further correction is on the cards. “We expect a significant price correction in the next one to one and a half months. Prices will go well below Rs 28,000 per 10 gm," added Gupta.