Diwali 2011: Gold coins, jewellery bookings up on price worries
Bookings for gold jewellery and coins have picked up in the city with the Pushya Nakshatra and Dhanteras festivals round the corner.
By TNN | Updated:
INDORE: Bookings for gold jewellery and coins have picked up in the city with the Pushya Nakshatra and Dhanteras festivals round the corner. Amid volatility in bullion prices, jewellers in the city believe that the yellow metal may touch the Rs 28,500 per 10 gram mark during the festival. Any upward price movement may affect trade adversely, traders say.
Buying gold on Pushya Nakshatra and Dhanteras, on October 20 and 24, is considered auspicious.
The global price volatility in gold has made it difficult even for experts to make any prediction about rates. Indore Sarafa Association president and director, Jaggu Bhai Jewellers, Hukam Soni, said, "Bookings for jewellery have gone up ahead of festivals. With demand picking up, price rise worries remain. However, comparing the trend across the country, the price is likely to remain close to Rs 28,500 per 10 gram."
If there is a rise of another Rs1,000 per 10 gram beyond the expected range, demand may fall sharply, Soni said. "If prices spiral beyond Rs 29,000 or Rs 29,500, the demand for gold and gold jewellery will nosedive," he said.
Another city-based bullion trader, Sudhir Gupta echoed similar concerns. He expects gold price to remain stable in the international market too.. "The festive season for buying gold is just 10 days away and the prices are not expected to cross $1,670 an ounce level in the international market. In domestic market, the precious metal may remain around Rs 27,000 to Rs 28,000 per 10 gram in the next fortnight," Gupta said.
Going by the buying trend in the city and the present price levels, the demand will be on expected lines. Fluctuation in global prices may pull down price to an extent. But if the Bombay Bullion Association is to be believed, gold price may shoot up to Rs 29,000 to 30,000 per 10 gram by Diwali.
"We are expecting a rise in gold price due to rising demand in the festive season. Prices can be anywhere between Rs 29,000 and Rs 30,000 per 10 gram," said association president Prithviraj Kothari.
Buying gold on Pushya Nakshatra and Dhanteras, on October 20 and 24, is considered auspicious.
The global price volatility in gold has made it difficult even for experts to make any prediction about rates. Indore Sarafa Association president and director, Jaggu Bhai Jewellers, Hukam Soni, said, "Bookings for jewellery have gone up ahead of festivals. With demand picking up, price rise worries remain. However, comparing the trend across the country, the price is likely to remain close to Rs 28,500 per 10 gram."
If there is a rise of another Rs1,000 per 10 gram beyond the expected range, demand may fall sharply, Soni said. "If prices spiral beyond Rs 29,000 or Rs 29,500, the demand for gold and gold jewellery will nosedive," he said.
Another city-based bullion trader, Sudhir Gupta echoed similar concerns. He expects gold price to remain stable in the international market too.. "The festive season for buying gold is just 10 days away and the prices are not expected to cross $1,670 an ounce level in the international market. In domestic market, the precious metal may remain around Rs 27,000 to Rs 28,000 per 10 gram in the next fortnight," Gupta said.
Going by the buying trend in the city and the present price levels, the demand will be on expected lines. Fluctuation in global prices may pull down price to an extent. But if the Bombay Bullion Association is to be believed, gold price may shoot up to Rs 29,000 to 30,000 per 10 gram by Diwali.
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"We are expecting a rise in gold price due to rising demand in the festive season. Prices can be anywhere between Rs 29,000 and Rs 30,000 per 10 gram," said association president Prithviraj Kothari.
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