Kolkata: The price of gold jewellery has been on a roll. While elevated prices has been utilised as an opportunity to make neat gains by some investors, some others, especially buyers of jewellery, have been impacted negatively. Reports have stated gold jewellery sales in the country dropped as much as 30% in the past two weeks. IBJA (India Bullion & Jewellers Association) data indicate that about 1.6 tonnes of gold jewellery were sold in the past fortnight. This was the time when gold prices shot up 5%.
“In the first fortnight of May, which was followed by Akshaya Tritiya, there was some momentum as prices started falling, touching Rs 92,365 per 10 gm on May 15. But since then, the price of the yellow metal has again started to move northwards, which has dampened the demand,” Surendra Mehta, secretary, IBJA was quoted in the media as saying.
Gold prices recently
The prices of gold 999 according to IBJA data is as follows:
June 3: Rs 96,962 (opening); Rs 96,867 (closing)
June 2: Rs 96,192 (opening); Rs 96,680 (closing)
May 30: Rs 95,315 (opening); Rs 95,355 (closing)
May 29: Rs 94,830 (opening); Rs 95,525 (closing)
May 28: Rs 95,627 (opening); Rs 95,700 (closing)
Incidentally, “999 gold” refers to gold with a purity of 99.9%. In simple words, it indicates the metal has 99.9% purity and only 0.1% is of other metal. This is the same as 24-karat gold and is the purest form that is used to manufacture gold coins, bars and bullion.
Gold price outlook
Quant Mutual Fund has come with a forecast for gold prices that says the prices could have peaked and there could be a correction in the next eight weeks but in dollar terms. One has to remember that India imports most of its gold requirements so much so that gold is the second most expensive item in India’s import bill after to crude oil. If the rupee depreciates against the dollar, the reduction in price in India could remain muted due to the exchange factor.
However, Quant Mutual Fund has shown optimism in the long run despite the short term outlook. Many experts have expressed the opinion that about 15-20% of one’s portfolio could include investments to gold. However, if geopolitical tension rises, as indicated by the intensification of Ukraine-Russia hostilities, gold prices could perhaps rise even inthe short term.
(Disclaimer: This article is only meant to provide information. News9 does not recommend buying or selling shares or subscriptions of any IPO, Mutual Funds, precious metals, commodity, any form of alternative investment instruments and crypto assets.)
Though gold prices have climbed down from the historic high of Rs 1 lakh per 10 grams, it has remained elevated and been in the Rs 95,000-96,000 range, which has affected the sale of gold jewellery. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
