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At India’s Multi Commodity Exchange, Gold December futures have so far gained 2.44% this month at Rs 31864 in evening trade on Monday. Gold December has resistanc e levels at 32,000, 32,200 levels, analysts said..

12 Nov 2012

MUMBAI (Commodity Online): Gold bullion prices here surged to Rs 31900 per 10 grams on Monday just ahead of Diwali and heavy trading on Dhanteras on Sunday considered auspicious for buying the yellow metal.

“The festive season has seen heavy buying by stockists and retailers. The recent dip in prices has pushed the demand for gold even further,” according to Prithviraj Kothari, Managing Director of RiddiSiddhi Bullions Ltd (RSBL).

Considering a further hike in prices, people have started buying gold and hence this festive season the demand has been much better than expected, he added.

In a five-day long rally, gold prices regained Rs 32,000 per 10 gm level after six-week in the national capital on Friday on sustained buying by stockists to meet the rising festive demand amid a firming global trend, Mr Kothari said.

The seesaw effect in gold prices is very much related to gold’s positive reaction to U.S. debt worries, with weakness from Europe sitting on the other side of the seesaw holding a very, very heavy key to the U.S. dollar. 

News reports quoting traders said that on Dhantereas 2.5 tones of gold sales were done by bullion dealers and jewellery retailers, representing around 30% increase from the same day last year.Despite higher prices consumers’ enthusiasm remained robust in anticipation of further price spurt going forward.

Higher prices caused by weakness in Rupee , higher import duty imposed on gold and silver this year by the India government have caused prices to be remain at elevated levels causing imports to fall and jewellery demand to decline, observers said.

At India’s Multi Commodity Exchange, Gold December futures have so far gained 2.44% this month at Rs 31864 in evening trade on Monday. Gold December has resistanc e levels at 32,000, 32,200 levels, analysts said.


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