MUMBAI (Commodity Online): Will gold prices come down to Rs 15,000 per 10 gm in India in the coming days. If you consider the views of some analysts, the yellow metal may see the rs 15,000 level in one year’s time.

According to a report published in some dailies in India, now that the price of the precious yellow metal has touched an all time high of Rs 18,000 per 10 gm, the demand for gold is at an all time low.

So much so, that traders were prompted to curtail their imports of gold. 

Bullion experts also point out that the weakening of dollar in the American markets on the one hand and the demand for gold as a hedging security has caused the hike in the prices of yellow metal to such a level. 

In this context, analysts point out that even in peak marriage season, demand has not picked up. Though gold was always seen as a safe bet, currently investors in international market are not confident over the future of the dollar as a currency.
Besides, the buying capacity of general public has diminished completely.

Price of gold in 1980s had touched an all time high of $856 per ounce then and within a short period it fell to $580 per ounce.  In a span of 10 years through 1980 to 1990, gold price had plummeted to just $282 per ounce. A similar correction could be in the offing and the price might dip to Rs 16,500 levels per 10 grams.

The current spur in the gold prices are due to speculators anticipating the price could rise to Rs 25,000 level.  This could happen only if the dollar price fluctuates further but then a contrarian speculation is also rife anticipating a correction in the near future and the price should stabilise between Rs 15,000 to Rs 16,000 levels soon.

Also, if the Indian government, which has already bought 200 tonnes of gold from IMF, decides to buy more gold for its depository, then prices may rise further.  The Chinese government reportedly also has similar plans, which could also impact the gold price.