Gold prices are likely to shoot up in the coming months due to the recent restrictions on gold import coupled with increase in gold prices against the dollar.
The president of the Madras Jewellers and Diamond Merchants Association, Jayantilal Challani said “Gold prices are likely to shoot up in the coming months even if there are a few fluctuations. It has been gaining in the international markets. After falling to 1180 dollars per troy ounce it has now gone to 1280. On Tuesday it had in fact gone up to 1340. Another factor is that mining companies are shutting down operations after the fluctuations in operations. This is also compounded by the falling rupee.”
Gold prices have been sticking to around Rs 2600 per gram for 22 carat for more than a week. With the rupee showing no signs of coming out of its free fall, prices of gold might just be on its way to recovery to its early April prices and it may shoot up further. He said that the rise in domestic demand will also be a factor for the recovery of gold prices.
“Due to the ongoing Aadi season and the fluctuating prices, customers are yet to start buying. But, this will change in the coming months. In the next 45 days or so gold prices are likely to go up to Rs 3,100 per gram for 24 carat which now stands at about Rs 2,700. In the next 6 to 8 months we expect gold prices to rise to Rs 3,500 for 24 carat.”
Since, July 26, the prices have been sticking to around Rs 2,600 closing at Rs 2,618 on Wednesday evening.
But, jewellers also feel that this can experience short fluctuations in the coming days though it will go up in the coming months.