Gold may touch Rs 18,000 by Diwali: Assocham

Gold is likely to touch Rs 18,000 per 10 grams during the forthcoming festival season as the demand for the yellow metal peaks around Diwali time, according to a projection by industry body Assocham.

Gold prices is expected to increase by Rs 2,000 per 10 grams by Diwali, which is followed by a marriage season in the country, it said. Currently, gold prices are hovering around Rs 16,000 per 10 grams.

"The bullion is likely to gradually see spurt in its prices and stay around Rs 18,000 per 10 grams by Diwali," Assocham President Sajjan Jindal said.

This is due to the fact that more and more investors are flocking to take refuge to gold as an asset class as it happens to be the best bet against rising inflation, Assocham said.

The high valuations of stocks and its attendant risk have by and large motivating investors to part shift to gold as an investment class, it said.

The chamber has suggested that those who want to invest in gold, should not purchase jewellery but instead buy the metal from Singapore or Dubai in form of bars. It also said buying pure gold from banks is costly because one has to pay about 25 per cent more than the market price.