Right price to invest in gold: experts - HINDUT 21-Oct-2014 09:40 Mumbai, Oct. 21 -- Gold prices, which have been ruling steady over the past few weeks, are likely to rise in the coming days as retail investors, who buy large quantities of the yellow metal during the upcoming festival season, realise that the rates of the precious yellow metal will not soften in the coming days. Gold is typically seen as a safe haven for investors and rises whenever other asset classes such as equities and currencies fall. Recently concerns about slowing growth and weak economic indicators in Europe and the US have pulled down equity markets globally, but shares have managed to pull back, which has kept fund flows into gold at modest levels, traders said. The price of gold has remained steady at about 27,000 for 10 grams in both Mumbai and Delhi and jewellers said this price could likely rise during Diwali. For the last few days gold prices have dipped marginally and are currently at 27,000. This is an attractive level and people waiting for rates to soften further will miss the bus, said Ashok Minawala, director, Danabhai Jewellers in Mumbai. In Delhi, gold of 99.9% and 99.5% purity rose by 70 to 27,650 per 10 grams. Buying trends for gold typically picks up post-Navratri, when consumers start stocking up on the yellow metal as it is considered auspicious. This is done for most part of the three-month season starting October, when wedding celebrations follows festivities. This also pushes up the premiums on gold. Gold as an investment may not do well. We will see more of consumption demand and not investment demand for gold, said Rasesh Shah, CEO of Edelweiss . Gold as an investment does well only when there is a global crisis as that is the time that investors flock toward the yellow metal as a safe haven for their funds. Internationally, gold prices have seen a fall and rise in the past fortnight, with rates first declining from $1,340 an ounce to $1,180 and then reversing to about $1,240. Analysts expect this to go up to $1,260 in the next week. Whatever little movement in gold prices that has been seen in India recently, has been due to a weaker rupee, said Geojit Comtrade research analyst Nitin Nachnani. Physical demand (when retailers buy gold jewellery) will start soon from the weekend and this may boost the rally, he added. In India, which is the worlds secondbiggest consumer of gold after China, the precious metal has always been a prized commodity gifted during marriages and festivals. The strong demand for gold and a wide price differential between prices of Indian gold and that in West Asia, had also fuelled a vibrant smuggling trade. Published by HT Syndication with permission from Hindustan Times. For any query with respect to this article or any other content requirement, please contact Editor at htsyndication@hindustantimes Copyright (c) 2014 HT Media LimitedHT Media Limited credit: Reuters
Posted on: Tue, 21 Oct 2014 02:55:53 +0000
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