Gold prices are expected to touch a record high of Rs 16,000 per 10 gram in the next three months driven by uncertainty in the global financial markets and currency movements, say jewellery retailers and analysts.Gold prices have shot up by 20 per cent to Rs 14,175 per 10 gram on February 2 compared to Rs 11,720 per 10 gram in the year-ago period.
Major jewellery manufacturers and retailers such as Geetanjali Gems Ltd and P P Jewellers and some analysts see the much possibility of gold prices touching Rs 16,000 per 10 gram by April, this year.
Currently, gold prices are extremely volatile. Within a week or so, prices would hover in the horizon of Rs 15,000 per ten-gram level. It may not be a surprise to see gold prices at Rs 16,000 per ten gram in the next three months.
Uncertainty in the global financial market and the rupee movement will be key drivers for gold prices, he said, adding that currently, there has not been a significant fall in demand in his stores due to price rise.
Consumers, who have already seen gold at Rs 14,070 per 10 gram towards 2008-end, are currently resistant to buy at above Rs 14,000 level, which has reduced jewellery demand by almost 40 per cent. The pace at which gold prices rose in the last month (from Rs 13,200 per 10 gram to Rs 14,400 per 10 gram), clearly indicates that the yellow metal will no longer be cheaper.
The domestic gold today is ruling at Rs 14,175 per 10 gram, while the global prices are quoting 905 dollar an ounce.
In line with jewellery retailers, market analysts are also of the opinion that by February-end gold may touch Rs 15,000 per 10 gram, and if the bullish trend continues, then, Rs 16,000 per ten gram level cannot be ruled out.
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