The lofty march of gold prices to the top has taken a beating. The metal, which had reached an all time high of Rs 13,500 per 10 gm on March 17 fell by over Rs 2,000 to Rs 11,480 on Wednesday in just 17 days.
Rise in dollar and heavy fall in precious metals in Europe because of profit-taking and liquidation triggered a selling.
As a result, gold fell to $887 an ounce in the international market from its earlier price of around $1,000 an ounce. Gold traders and experts, meanwhile, believe that prices are expected to fall further and so investors are putting purchase on hold.
"Price of the metal has dipped by more than Rs 2,000 and traders have started hoarding gold. But, in the retail market there is no buzz as investors are waiting for prices to deflate further," said president of Gem & Jewellery Trade Council of India, Shanti Patel.
According to Mumbai-based bullion analyst, Bhargav Vaidya, investors are keenly watching the movement of gold prices.
Meanwhile in Ahmedabad, gold trading has increased by four times. "In two days, the trading has increased to around 400 kg per day from the earlier 100 kg," said Ahmedabad-based bullion trader and analyst, Girish Chokshi. "Gold prices in the domestic market may reach Rs 11,000 per 10 grams," he said.
Rise in dollar and heavy fall in precious metals in Europe because of profit-taking and liquidation triggered a selling.
As a result, gold fell to $887 an ounce in the international market from its earlier price of around $1,000 an ounce. Gold traders and experts, meanwhile, believe that prices are expected to fall further and so investors are putting purchase on hold.
"Price of the metal has dipped by more than Rs 2,000 and traders have started hoarding gold. But, in the retail market there is no buzz as investors are waiting for prices to deflate further," said president of Gem & Jewellery Trade Council of India, Shanti Patel.
According to Mumbai-based bullion analyst, Bhargav Vaidya, investors are keenly watching the movement of gold prices.
Meanwhile in Ahmedabad, gold trading has increased by four times. "In two days, the trading has increased to around 400 kg per day from the earlier 100 kg," said Ahmedabad-based bullion trader and analyst, Girish Chokshi. "Gold prices in the domestic market may reach Rs 11,000 per 10 grams," he said.
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