said that if the government hikes more duty, then the high premium on gold in the domestic market might act a dampener for demand during the festival season in the fourth quarter.
However, even if the gold imports are restricted to the previous year's level it will be much higher in value terms with the weak rupee, he said.
Going forward he said the gold prices will be at around Rs 31,000 in the domestic market and at USD 1,400-1,320 in the international market.
To contain the current account deficit, government has increased import duty on gold, silver and platinum to 10 per cent with a view to arrest the declining value of rupee and contain the fiscal deficit to 3.7 per cent of the GDP.
The Reserve Bank has also imposed restrictions on gold imports by banks and other authorised agencies.