Gold traders in Chennai expect price to surge to Rs 6,700/gm in a week
Gold sellers in Chennai expect an increase in the price from next week, which would affect retail sales. However, in the weeks to come, the sale and prices would be higher due to geopolitical changes.
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CHENNAI: Gold is all set to glitter again in the days to come and the sales will be higher during the upcoming festival season, admit traders.
Gold sellers in Chennai expect an increase in the price from next week, which would affect retail sales. However, in the weeks to come, the sale and prices would be higher due to geopolitical changes.
The Union budget recently lowered the basic customs duty of gold and silver from 5% to 6%, which spiked the initial sales, as prices fell to Rs 2,200 per sovereign in a day. Sellers opined that the reduction in customs duty would also reduce incidences of smuggling.
Both sellers and customers benefit from the reduction in gold price, as gold from the Gulf and here would be available at the same rate. Gold price on Saturday was Rs 6,450/gram and Rs 51,600 per sovereign. Silver was sold for Rs 90/gram in the city.
But these prices would surge soon, opined traders. “Usually during this season, gold sales would be less, but this year as the price decreased, sales were average. Expect the price to increase in the following days and mostly, from Monday onwards, by around Rs 40-50/gram. This is due to the geopolitical situation around the world, and not because of customs duty or any other changes in India,” explained Jayantilal Challani, president of the Jewellers and Diamond Traders’ Association of Madras.
However, small-scale sellers rued that gold sale was comparatively lesser, even after prices dipped. “The price would go up to Rs 6,700/ gram within a week,” stated Suresh Kumar of Sri Sumangali Jewellers, Nungambakkam.
