Gold prices in India could drop by Rs. 2,000 from the current levels in close to medium term as the yellow metal’s appeal draining in place of an asset, said by industry body Assocham a report.
The report, on the other hand, stated that gold is unexpected to decline under Rs. 25,000 per ten grams because of the strong buying support at that level and a weaker rupee against the USD.
Gold prices in India dropped to reach Rs. 27,790 per ten grams in the national capital this month from the high of Rs. 32,990 per ten grams in April.
According to the report by Assocham on gold, a drop of Rs 2,000 or a bit more from the current level looks reasonable in the near to medium term.
The title of the report was “Will Gold Retain its Luster in 2013?” found that the leading reason for a runaway increase in gold prices in India was absence of investment avenues for the Indian middle and upper middle class.
Another report said that the afresh announced inflation indexed bonds won’t fit the bill since the instruments have an extensive development period while the secondary bond market in the country has not established for the retail investors.
The world’s biggest gold consumer, India, is predicted to import nearby 900 tons in 2013.