Gold prices may go up further during the forthcoming festive season to touch Rs.18,000 per 10 gram, according to the Associated Chambers of Commerce and Industry of India(Assocham).

Gold has seen a huge build-up in the exchange traded funds (ETF) in the last few weeks and will gain further momentum in view of festive demand and low international production, Assocham said in a report.

Therefore, its prices may go up to Rs.18,000 per 10 gram by Diwali from current levels of around Rs.16,000, it said.

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

“It is interesting to mention that this asset class has outperformed equity and debt funds in the last 12 months. Weakening of dollar and fears of accelerated inflation have also contributed to the flow of money to safer assets like gold,” the chamber said.

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