Yellow metal price retains value on speculation, short-term deals

Mumbai-India (Oct 14)  Domestic and international gold prices averted any fall in value after short period buying on Gold Futures speculation on short and long term investment, metal traders said.

Yellow metal closed at Rs 61,043 per tola with a rise of Rs 1,200 per tola by the end of trade primarily due to international prices of the yellow metal which stood firm, dealers said. In grammage term, metal closed at Rs 52,390 per ten grams, up by Rs 985 per gram. In international market, gold price closed at around $1,219 an ounce with slight upward change in value.

Dealers said rise/fall in prices of gold globally largely depends on fluctuation in international crude oil prices. It is also having an impact on local bullion prices.

However, the escalation of gold prices in the local markets is not proportionate with the international markets, dealers said. Because the demand for gold declines here whenever the yellow metal becomes dearer globally, they added.

The rates might go considerably up from next week when full-fledged trading would start.

Gold was trading in the local markets at cheaper rates than Dubai and Saudi Arabia, where people have purchasing power. Here the purchasing power of general public has fallen, so they don’t buy gold when it gets expensive because it is not an essential item, a trader said.

Gold prices in the local markets depend on fluctuations of global bullion rates owing to the rupee-dollar parity, but now it is also linked with international oil price.

Gold imports in the country are at a standstill for more than last 9 months, as prices of gold remained higher in the adjoining markets and not affordable for local dealers.

DailyTimes