Gold to cost Rs 31,000 per 10 gram by December: Report

Business

oi-Staff

By Super

Published: Monday, August 19, 2013, 9:29 [IST]

Gold prices are likely to hover at around Rs 31,000 per 10 grams by the end of this year even though the demand for the metal may remain at 860 tonne after the government restrictions to curb imports, say experts.

"Weak rupee and higher duty will keep the landed cost of gold higher. The yellow metal is likely to be around Rs 30,500 to Rs 31,000 level by December end," Angel Broking head Commodities Naveen Mathur told PTI here.

Gold MCX price was Rs 28,600, while in the international market it was at $1,376.70.

Mathur said if government takes more measures to discourage import of gold, it will affect its supply thus putting more pressure on its prices.

Internationally, gold is range bound at present with a bearish outlook due to strong US dollar and reports of improving American economy.

"Gold will be around $ 1,375-1,400 an ounce level by the year end. It will be pulled by opposite fundamentals like US dollar gaining strength and the growing Chinese demand," he said.

According to Mathur, demand for gold is likely to remain same as that of last year.

"Even as the good monsoon indicates that demand for gold will pick up during the fourth quarter, high prices following higher customs duty and lack of supply will keep it under control," he said.

However, the World Gold Council, which represents leading gold mining companies across the globe, said demand for gold in India and China was expected between 900 and 1,000 tonnes (in each nation) in 2013.

PTI