Gold prices in the domestic market are expected to fall further this week following weak global trends amid a steep drop in crude oil prices and a rally in the value of the dollar. London gold dropped over 2.5% towards $800 an ounce on Tuesday. Gold standard spot at the Ahmedabad market was down Rs 221 to trade at Rs 11,669 per 10 gm on Tuesday, while MCX October futures were also down Rs 200, to settle at Rs 11,620 per 10 gm (till 5.00 pm) over the previous day. Gold spot at international markets on Tuesday fell to a low of $790.50 an ounce from the an level of $817.15- $818.75 an ounce earlier in the day.
?Gold prices may go down further from the current level, and it can touch levels of $780. I think new buying for gold may come up in the next few days,? Bhargav Vaidya, a leading gold analyst, said. In the domestic market, gold demand has already started picking up and people have advanced their purchases before Diwali and the wedding season, following a sharp decline in prices.Silver spot price in London also dropped overnight by nearly 6% to trade at $12.55 an ounce, reaching the day?s low of $12.45 an ounce on Tuesday. ?Demand for silver remained good and as supplies were low,? a dealer of RSBL Spot said.
With the Hindu festival of Ganesh Chaturthi on September 3, the demand for gold is set soar as a lot of consumers, particularly those in south India, are expected to buy idols or jewellery in gold, he said. From an average retail sale of 300kg – 400 kg of gold bar per day at the start of 2008, demand has surged to 3 to 4 tonne per day in August, sources said.