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Rediff.com  » Business » Gold prices may fall to Rs 13,000 by June

Gold prices may fall to Rs 13,000 by June

April 08, 2009 16:41 IST
The gold prices may rebound to Rs 13,000-level in the domestic markets by June if rupee remains resilient against the US currency, experts believe. Dollar denominated gold gets cheaper when the rupee rises against the greenback.

"Gold prices have started falling from the record highs in February. The bearish trend is expected to continue, pulling prices further down to Rs 13,000 per ten gram by June-end," brokerage firm Karvy Comtrade Harish G told PTI.

The Bombay Bullion Association President Suresh Hundia expressed similar views, "Prices may decline to Rs 13,500 per ten gram by April-end. If rupee remains stronger against the US dollar, then gold rates may fall up to Rs 13,000 per ten gram by June."

At present, gold prices are hovering between Rs 14,500 and Rs 15,000 per ten gram.A declining trend in gold prices may spur physical demand and gold imports in the coming days, he said, adding that India, which annually buys 500-700 tonnes of gold, did not import gold in the last two months due to high prices.

Gold prices rose to a record high of Rs 15,800 per ten gram on February 19 and thereafter prices have been hovering around Rs 15,000 per ten gram.

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