Do More With Reuters
Partner Services

India gold seen above 13,000 this year on financial woes

Thu Jul 17, 2008 5:18pm IST
 
Email | Print | | Single Page
[-] Text [+]

By Ruchira Singh

MUMBAI (Reuters) - Indian gold prices are seen above 13,000 rupees per 10 grams at the end of the next two quarters as the world reacts to high inflation, financial turmoil and geo-political tensions by buying more of the yellow metal, a Reuters poll showed.

The median of a forecast by 14 banks and commodity brokerages showed the price at 13,500 rupees at the end of September and 13,400 rupees at the end of December.

The median of the average price of the metal in 2008 was at 12,598.5 rupees.

"Gold is being more of a safe haven," said Rajan Venkatesh, managing director, India Bullion, at ScotiaMocatta, one of the prominent sellers of precious metals in India.

"It is the U.S. economy, crisis in the financial market, the fact that the U.S. Federal Reserve is not giving enough confidence to the dollar and equities not doing well, that is making people buy gold."

On Thursday, the August gold futures on the Multi Commodity Exchange of India Ltd (MCX) was at 13,274 rupees, down 3.6 percent from an all-time high for futures on Tuesday.

But the current price is up 52 percent on year when seen on MCX's continuation chart.

The poll showed gold is not expected to remain steadily at higher levels.  Continued...

India Investment Summit 2009
India Investment Summit 2009

Top executives and bankers discuss their own plans and the broader opportunities and challenges for India during the Reuters India Investment Summit in Mumbai and Bangalore.  Full Coverage | Blog 

Hugh Hefner
PLAYBOY SALE
An icon bows to changing times

With his Playboy Enterprises in talks to be sold for about $300 million, the 83 year-old Hugh Hefner will be giving up control over the iconic adult entertainment empire he founded that was instrumental in shaping society's opinions on nudity, sex and free speech.  Full Article 

Photo
A man walks past a bronze statue of a bull outside the Bombay Stock Exchange (BSE) building in Mumbai in this March 25, 2008 file photo. REUTERS/Punit Paranjpe/Files
Bubble trouble?

With India's benchmark stock index, the BSE Sensex, at around 17,000 points, are the Indian equity markets looking at a possible bubble?  Commentary 

Market Update

  • IndiaIndia
  • USUS
  • UKUK
  • Asia
  • Most Actives

SPECIAL REPORT

Himangshu Watts
India's food dilemma

Indian farms are failing to attract capital or talent, either from rich landlords or the students who graduate from agricultural universities.  Full Article | Related Story 

showcase

U.S. Recession
U.S. Recession

A trip through the epicenters of the American recession.  Full Coverage 

 
Central Banks Cautious
Central Banks Cautious

Reuters tracks the policies of the world's top central banks as the debate over global economic recovery rages on.   Full Coverage 

 
T P Raman
Column - RBI leads the world

Reserve Bank of India's approach ring-fenced the banking system.   Full Article 

 
Funding Blues
Funding Blues

A popular tactic used by Indian brokerages to raise money for rich clients is likely to be banned.  Full Article 

 
Not Enough Jobs
Not Enough Jobs

Venture capital creates jobs, but not enough.  Full Article 

 
Column - A Sweet Dream
Column - A Sweet Dream

There are good reasons for Ferrero to consider a combination with Cadbury.  Full Article