Ahmedabad traders see gold near `28,000 during Dhanteras

With Pushyanakshatra and Dhanteras falling in next 15 days, the people of Ahmedabad have already started booking gold coins and jewellery to make a buy on these auspicious days. Looking at the present volatility in gold prices, the bullion traders of Ahmedabad are fearing a price rise in customers. But, city traders expect yellow metal to remain between Rs27,500 and Rs28,500 per 10 gram in Ahmedabad during the auspicious days.

For people of Gujarat, Pushyanakshatra and Dhanteras are most auspicious days for buying gold, which are falling on October 20 and 24. "Many customers have already started booking their jewellery as they want to take the delivery on either of these auspicious days. The frantic rush among customers to book gold suggests that customers are bit scared of rise in prices. But, looking at present situation of gold prices in international markets, I think the precious metal is likely to remain close to Rs28,500 per 10 gram," said director of AB Jewels, Manoj Soni.

Soni said that if there is even a rise of another Rs1,000 beyond the expected range, demand may fall drastically. "If the price rises beyond Rs29,000 or even Rs29,500, the demand for gold or gold jewellery will fall drastically," he said. The Ahmedabad-based bullion trader and analyst, Girish Choksi echoed similar views. He said that gold is likely to remain stable even in international market.

He said, "The festive season for buying gold is just 15 days away. And in international market, the gold prices are not expected to cross $1,670 an ounce level. While in domestic market, it is expected that yellow metal may remain around Rs28,000 per 10 gram in the next fortnight," said Choksi.

The president of Gem & Jewellery Trade Council of India (GJTCI), Shanti Patel said that now-a-days, no one can predict bullion prices in next 15 days. "In the global markets, the bullion prices have become so much volatile that it has become difficult to make any prediction.

But, looking at present price levels, it looks like that gold prices in Ahmedabad may remain around Rs28,500 per 10 gram and if there is correction in gold prices, it may fall to level of around Rs26,000 also," he said. However, Bombay Bullion Association is expecting gold to cross Rs29,000 per 10 gram by Diwali. "We expect gold prices to shoot up to Rs29,000-30,000 per 10 gram by Diwali due to local demand," Bombay Bullion Association president Prithviraj Kothari said. The metal is still considered to be the best bet for hedging as the global economic crisis continues without making any tangible headway, Kothari pointed out.