Hyderabad: Gold prices have gone up by 8-10 per cent in the last month. In early January, the price of one gram of gold was Rs 2,585 and had climbed to Rs 2,783 by Friday.
Experts attribute the hike to the rise in international gold prices to about $1,070 per ounce. With no increase in interest rates expected, gold might touch Rs 2,800 per gram and will be stable for a while, they say.
Mr Satish Agarwal, member of the Twin Cities Jewellery Association, said, “The increase in gold prices by 8-10 per cent last month is a global phenomenon. India imports gold. When the dollar goes up, it has a direct impact on gold prices. Also, global recession and Japan reducing its interest rates to boost its economy are other reasons for the increase in gold prices. It is during this period that investors consider the yellow metal a safe bet.”
He said that the gold prices were at a five-year low in the December-January period. “When stock markets go down, gold becomes appealing,” he said.
Jewellers are expecting the government will reduce customs duty on gold from 10 to 5 per cent in the Budget and say this should bring some respite to gold.
If the Indian rupee fares well against the US dollar, the cost of gold will fall. These are the only two situations that could bring the prices down locally, an association member said.
