KOCHI: At Thursday’s rate of Rs 960 a gram for 22-carat gold, the precious metal’s price is already at an all-time high. There are indications that the yellow metal will touch the four-digit and magic figure of Rs 1,000 per gram of 22-carat gold—(Rs 8,000 a sovereign) by the month-end, if not earlier.
The widening gap between the demand and supply of the precious metal is said to be the prime reason the steady increase in prices. ‘‘International advisors feel that the price is likely to go up further as the gap between demand and supply is increasing.
Popularity of gold, as an investment option, like stocks and properties, is on also increasing. But the supply is almost constant despite a strong and steady increase in gold demand,’’ the president of the Indian unit of the World Gold Council (WGC), Sanjeev Agarwal, said.
The escalating tension between Iran and the US will push crude oil price higher in the international market, which is at $ 70 a barrel now. The 25 basis point increase in interest rates by the Federal Reserve points to further increases. These two factors will also contribute to a steady increase in gold prices, which was priced at $712 an ounce in the international bullion market on Thursday.
The local retail jewellery market is experiencing the impact of the sky-rocketing gold price. ‘‘It is a matter of less than 5 percent increase and it is likely to happen in a months’ time. But, the fact is that there is less demand for jewellery, marriage seasonal purchases apart,’’ said the Calicut Bullion Dealers Association secretary, Ram Mohan Kamat.
‘‘The frequent and intra-day price fluctuation has been affecting our business. The price will cross Rs 1,000 a gram in a fortnight’s time. The All India Farafa Association had pleaded with the government to exclude bullion from the Multi Commodity Exchange scheme, only to save us from the unhealthy fluctuations,’’
The widening gap between the demand and supply of the precious metal is said to be the prime reason the steady increase in prices. ‘‘International advisors feel that the price is likely to go up further as the gap between demand and supply is increasing.
Popularity of gold, as an investment option, like stocks and properties, is on also increasing. But the supply is almost constant despite a strong and steady increase in gold demand,’’ the president of the Indian unit of the World Gold Council (WGC), Sanjeev Agarwal, said.
The escalating tension between Iran and the US will push crude oil price higher in the international market, which is at $ 70 a barrel now. The 25 basis point increase in interest rates by the Federal Reserve points to further increases. These two factors will also contribute to a steady increase in gold prices, which was priced at $712 an ounce in the international bullion market on Thursday.
The local retail jewellery market is experiencing the impact of the sky-rocketing gold price. ‘‘It is a matter of less than 5 percent increase and it is likely to happen in a months’ time. But, the fact is that there is less demand for jewellery, marriage seasonal purchases apart,’’ said the Calicut Bullion Dealers Association secretary, Ram Mohan Kamat.
‘‘The frequent and intra-day price fluctuation has been affecting our business. The price will cross Rs 1,000 a gram in a fortnight’s time. The All India Farafa Association had pleaded with the government to exclude bullion from the Multi Commodity Exchange scheme, only to save us from the unhealthy fluctuations,’’
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