Mumbai: According to the Bombay Bullion Association, gold prices are expected to cross Rs. 29,000 per 10 gram by Diwali.
“We expect gold prices to shoot up to Rs 29,000-30,000 per 10 gram by Diwali due to local demand,” Bombay Bullion Association President, Prithviraj Kothari, told Indian media here.
The metal is still considered to be the best bet for hedging as global economic crisis continues.
Gold prices witnessed volatility in September, following the deepening European debt crisis. However, gold is expected to remain range-bound and is waiting for cues from the European markets.
Imports of this precious metal, which stood at 553 tonne for the January-June period, could cross the 1,000 tonne mark this year amid strong demand, the World Gold Council said.
“The first half performance was very strong and if this trend continues and Q3 imports reach 170-180 tonne and in Q4 around 250 tonne, then we may cross the 1,000-tonne-mark this year, “WGC Managing Director for India and the Middle East, Ajay Mitra, had recently said.
Total gold imports stood at 958 tonne at 2010.