Gold prices take sheen out of festival season

LUDHIANA: Gold prices shot up last year, giving people grief in the festival season. This year, the trend is likely to be repeated. Gold price currently stands at Rs 29,050 per 10 gms. In all probability, prices will rise in the months to come, making the yellow metal unaffordable. Last year, the price of gold was Rs 30,500 by the end of August. The amount rose to Rs 31,300 in December.In December, 2012, the price stood at around Rs 29,600.
"Price of gold is bound to go up. More so because of the import duty on gold. But the rise in prices has obviously been triggered by the forthcoming festival season. Irrespective of demand or supply, the only way to curb rising prices is regulating import duty on gold", said Tribhovan Thapar, a city-based jeweller. Gold is important for the average Indian family, so price rise pinches people.
Sonia Sood, a homemaker from Model Town, said it's difficult to track the trend of the metal. "A person from an upper middle class family waits for the price to come down a little so an investment can be made. But it's difficult to make out if the metal can be deemed cheap at Rs 28,000. Price is increasing consistently".
Anand Sikri, President of the Ludhiana Jewelers Association feels it is not just the marriage and festival season affecting gold prices. "These days, no one wants to invest in gold. When girls get married, they prefer taking expensive gadgets and electrical goods. The price rise can be attributed to the war in Ukraine and the falling currency", he said.