Gold price may slip below Rs 11,500 per 10 grams

Gold price may slip below Rs 11,500 per 10 grams
6 Aug, 2008, 1936 hrs IST, PTI
MUMBAI: In line with falling crude prices and rising dollar, gold prices may see a downward trend and could fall below Rs 11,500 per 10 grams, a top industry official said.

"Taking a cue from falling crude prices, gold prices may fall from the present Rs 12,025 per 10 grams to touch Rs 11,400 per 10 grams by this month end," Bombay Bullion Association's President, Suresh Hundia, told reporters here today.

Gold import has also increased due to slight increase in demand due to falling prices.

India imported 24 tonnes of gold in June, which is 50 per cent of the gold imported in the same period last year, Hundia said, adding that festive demand was unlikely to have any impact on pricing.

The standard gold (99.5 per cent purity) slipped further to Rs 12,025 from Rs 12,135 and pure gold (99.9 per cent purity) to Rs 12,085 from Rs 12,200 per 10 grams in the Mumbai bullion market today.
In the international market, continuing its downward journey, gold fell below USD 900 an ounce on Tuesday for the first time since June amid a commodities slump as funds sold the metal.

Gold price may hover between $822 and $892 per ounce, in the near future, Hundia said.