Ahmedabad: sighing for jewelry and gold traders, gold prices finally showed the downward trend after a week’s rally.
The price of yellow metal settled Rs 50,600 per 10 grams in Ahmedabad Market on Wednesday, down by Rs 500 in one day against Tuesday Rs 51,100 per 10 grams.
According to analysts, gold prices showed a downward trend in the international market and drifted around $ 1,860 per ounce according to the world gold council, after the dollar edged 16 months high.
However, the price of gold, is expected to increase in the days to realize fears of increasing global inflation, suggesting industrial players.
“Gold is usually considered a fence on inflation and amid fears of global inflation coupled with the depreciation of Indian rupees that are consistent with the US dollar, the price of yellow metals in the Indian market is expected to rise in the coming days,” said a bullion trader based in the city.
Throughout the season during the celebration of Diwali, the demand for gold and silver remains floating, mostly driven by purchasing muhatat wedding jewelry, lightweight jewelry and coins and bars.
On Ahmedabad only, 750kg gold sales were reported only in two lively muhails.
However, bar traders suggest that with a surge in gold prices recently this week, customer footsteps have been reduced.
“People who buy coins and bars for investment purposes tend to oversee prices.
With a dramatic price increase, the limit demand has a blow and people can wait a few weeks to stabilize prices,” said Hemant Choksi, a gold trader based in city.