Last Updated : 05 November 2012 at 20:30 IST
Gold prices may find support at $1662 per ounce and will field a bullish recovery according to a Riddhi Siddhi Bullion Private Limited, India s largest bullion trading company.
“Gold is likely to find its support at $1662 per ounce. And moreover gold will have a bullish recovery and will increase to Rs.30, 500 in the short term. This increase in price is due to heavy demand in the Indian markets this Diwali. Moreover, ETF holding have also increased. Hence gold is staged to have a bullish recovery.” a spokesperson from the company said in an e-mailed response.
“The main reasons for this downfall in gold were the strong US jobless data. The U.S. Department of Labor said 171,000 jobs were created in October, and the August and September job-creation figures were revised higher.” the communique said.
Short, medium-term outlook
They also expect India gold prices to move in the range of Rs. 30,000- Rs. 30,500 per 10gm on the lower side and Rs.32, 000- Rs.33, 000 on the higher side for short term.
“In the long term gold is expected to move in the range of Rs.29,000- Rs.29,500 on the lower side and 33,000- 35,000 on the higher side.” RSBL said
Demand for gold in India is comparatively higher than China due to the ongoing festive season and the supply of gold is also enough to meet the demand, they added.
No supply bottle-necks in gold
“There won’t be that great an effect on the supply of gold, as gold is more of a demand game.” the spokesperson said.
“And lately South Africa’s gold mines agreed a wage deal with unions on Thursday as the bulk of the gold sector’s striking miners returned to work under threat of dismissal. Most of the workers have resumed jobs. Gold is primarily affected by other factors namely- global demand, economic data, US dollar index etc. Hence I don’t think recurrence of mine strikes will create a supply bottleneck for gold.” the person added.
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