Consumers are likely to end up paying more for gold as fresh restrictions on imports of the yellow metal imposed by the Reserve Bank of India (RBI) will reduce supply in the market. Traders expect the stock to fall short as demand rises in the festive season, which starts in the run-up to Dussehra and Dhanteras leading to Diwali in November. Subsequently, the marriage season sets in and the demand for gold jewellery increases .
Kumar Jain, vice-president, Mumbai Jewellers Association, told Mail Today that the price of gold rose by Rs 1,000 per 10 grammes as soon as RBI announced the new curbs on gold imports by ragging them to exports.
"The premium on gold will go up further as the 20 lakh small jewellers in the country who operate with small stock will find it difficult to get fresh supplies to meet demand," he explained. Gold prices touched their highest level in more than a month at Rs 28,365 per 10 gm on Tuesday. Gold futures prices on Wednesday rose by Rs 81, or 0.29 per cent, to Rs 27,655 per 10 gm for delivery in August as speculators enlarged positions largely in tan-dem with a firming trend over-seas as spot demand rose.
Courtesy: Mail Today