Gold glitters to deceive
August 19, 2008
After hitting a peak of $1,011.25 (Rs 40,472.50) per troy ounce in the international markets on March 17, gold prices have fallen about 20 per cent to $817.75 (Rs 34,345.50) on August 12.
But despite the fall, bullion traders don’t think Indian consumers, by far the biggest buyers of gold in the world, will jump to buy the yellow metal any time soon.
Harish Galipelli, Head, Research Karvy Comtrade, says the ongoing correction in gold prices will continue for some more time. He reckons that if prices breach $800 (Rs 33,600) levels, they may fall further to $755 (Rs 31,710) levels.
“However, despite this, we remain bullish on gold over the long term,” he says.