New Delhi, Apr 16 : As gold futures tumbled by more than $ 90 an ounce on the world market on Monday, in India, gold futures traded at Rs 27,100 per 10 gm on Monday bringing it to a 15-month low.
With mass consumers raring to buy gold at cheaper prices, expert advise that gold prices may fall more, and it would be advisable to buy gold ornaments, a traditional Indian habit, after a week or so.
Not only gold, but prices for copper have also gone down after reports came about China's growth rate falling lower than expectations. On Friday, gold prices on world market lost $ 63.50 per ounce, that is, 4.1 per cent to $ 1,501.40 on the Comex division of New York Mercantile Exchange.
China's GDP for Jan-March rose by 7.7 pc, slower than the growth rate of 7.9 pc for Dec-Jan last year. Industrial production rose 8.9 pc against an expectation of 10 pc.
Goldman Sachs last week lowered its average gold-price forecast for 2013 to $1,545 an ounce, a level it touched last Friday.
Market strategist Stan Shamu at IG Markets in Melbourne has said traders who were anticipating a bounce in gold on Monday were caught on the wrong foot.
“The drop only halted at $1,426, which was a resistance zone in December 2010 and March 2011”, Shamu said.
Friday's settlement price marked a 20.5 per cent drop from the record settlement of $1,888.70 an ounce touched on August 22, 2011.
People have started flocking to jewellery showrooms to buy more and more gold ornaments at cheaper rates, but experts advise caution. Gold rates may tumble more.
Shankar Sharma of First Global has asked investors to opt for dollar assets, specially property abroad, instead of gold. This will give a huge return in the near future, he advises.
Prices of Indian jewellery firm shares have also taken a hit after the slump in gold prices.
Meanwhile, for ordinary Indians, who crave for gold ornaments for their family members, it's festive time, and they are flocking to jewellery showrooms by droves.
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