Gold prices in spot markets across the country soared on Wednesday amid reports that the yellow metal would soon regain the psychologically important $1,000 an ounce in overseas markets and volatility in stock markets.
Prices in the Delhi bullion market gained an impressive Rs. 315 to close at Rs. 14,735 per 10 gram, while in Mumbai it shot up by Rs. 151 to Rs. 14,421. In Kolkata, it was up by Rs. 265 at Rs. 14,715 and in Chennai, the metal moved up by Rs. 200 to Rs. 14,515.
Global metal consultancy GFMS in a study says gold prices are expected to rise by over 25 per cent to touch $1,100 an ounce after summer as sustained concern over global economy will prompt investors to shift to the safe-haven status of the precious metal.
Commodity experts also say gold prices may rebound to the Rs. 13,000-level in domestic markets by June if the rupee remains resilient against the U.S. currency.
Dollar denominated gold gets cheaper when the local currency gains against the greenback. The domestic currency has been ruling in the range of 50 against the dollar after falling to the sub-52 level in March.
“Gold prices have started falling from the record highs in February. The bearish trend is expected to continue, pulling prices further down to Rs. 13,000 per 10 gram by June-end,” according to brokerage firm Karvy Comtrade.
