Gold drifted marginally lower on Tuesday in Mumbai bullion market on global cues despite buying support from domestic jewellers for their preparation for India International Jewellery Show (IIJS). Standard and pure gold closed Rs 15 lower at Rs 8,800 per 10 gram and Rs 8,850 per 10 gram respectively. The demand has seen a rebound in the domestic market as jewellers participating in the event require the yellow metal for innovative designed products. | |
| "Today, Index-based trading is helping the price move in the global as well as domestic market. Therefore, prices are taking cue of equity indices globally and India is no exception. Hence, it is quite difficult to anticipate the future movement of the yellow metal," said Prithviraj Kothari, director, Riddhi Siddhi Bullion. |
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| In the domestic market, however, the price would continue to range between Rs 8,700 and Rs 9,100 per 10 gram because gold reactes sharply to rupee appreciation or depreciation. |
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| In contrast to the local analysts' estimate for the yellow metal to decline up to $650 an ounce in the near future, the global asset management company UBS estimate the price to go up sharply to $700 an ounce. |
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| The UBS argued that the demand is slowly picking up in India, the world's largest consumer, which would push the prices up. The price of bullion may climb to $750 an ounce in three months, it added. Gold for immediate delivery traded at $656.32 an ounce early Tuesday in London. |
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