After a massive fall in gold prices over the last three trading sessions, gold on Wednesday remained steady at Rs.25,790 per 10 gram on the multi-commodity exchange, up by Rs.27, and on international markets, it was up by $4 at $1,390 an ounce.
During the day, it dipped to Rs.25,435 per 10 gram level but rebounded late evening.
Kishore Narne, Associate Director and Head, Commodities, Currency, at Motilal Oswal Commodity Broker, said, “It was bound to consolidate after such a huge fall, although there is no real reason but then the fall was too drastic. The market is just recovering from the panic mode.”
Ashok Minawala, former Chairman, All India Gem & Jewellery Traders Federation, and Chairman, Danabhai Jewellers, felt that there were already signs of buyers for physical gold. “With the onset of festive season, people are picking up smaller quantum of gold. This is also true for investment purposes given the attractive prices.”
Historically, India was never a gold price-maker but rather a price-taker of global prices, said Mr. Narne, adding, “gold is not driven by demand and supply and it is more of a currency than a commodity. Gold is impacted by macro-economic trends, economic health and currency movement. I would continue to remain bearish on gold and it could move to $1,280 an ounce.”
