Gold gets festival boost
Prices of the yellow metal will remain steady in India in the next 3-6 months
By : DC Correspondent
Update: 2014-10-06 02:58 GMT
New Delhi: Gold is expected to retain its sheen this festive season despite global uncertainties as retail investors find current prices attractive, according to a study.“India, one of the two largest gold consumers in the world, is in the middle of 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 on the financial markets of the emerging economies,” said an Assocham study.
It said that despite a bearish outlook being attached to gold in the international market due to rising global confidence in the US dollar, prices of the yellow metal will remain steady in India in the next 3-6 months oscillating between Rs 26,600 and Rs27,900 per ten grams.
It said though there is a shuffling of global assets with bias against gold, the yellow metal will not lose its safe haven appeal in the backdrop of geo-political upheavals in different parts of the world- ISIS spread in Iraq, Syria with attendant risks in the Middle East, impact of western sanctions on Russia because of its intervention in Ukraine and the latest being the pro-democracy unrest in Hong Kong.
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 the Indian market will be somewhat neutralised by commensurate strength in the US dollar which is rising against all international currencies.