Gold jewellery prices set to dip

NEW DELHI: Gold jewellery is likely to get cheaper in the short term with gold prices in the country expected to slide over the next three to four months. Prices of the yellow metal, which touched a 10-month-low of Rs 29,470 per 10 grams in the national capital on Thursday, is unlikely to rise upwards of Rs 30,000 per 10 grams in the near term on the back of weak demand and uncertain global economic conditions , analysts said.
With the US dollar getting stronger, combined with negative sentiments in the European economy, analysts said gold prices will continue to proceed in the negative direction. Even domestically, with the marriage season over, demand for physical gold is expected to remain subdued, keeping prices low.
According to experts, gold prices are expected to fall to as low as Rs 28,400 in the near term. On the higher side, prices of the yellow metal might go up to Rs 29,500. “Gold price increases when there is a stimulus . With the US economy getting better, money is flowing out of investments in gold,” said Sushil Sinha, business head, Karvy Comtrade. With apprehensions of the US Federal Reserve scaling back the quantitative stimulus, analysts said it is very likely that international gold prices will fall below the $1,500-an-ounce level in the next few weeks.