Gold prices dipped sharply on Friday in response to better-than-expected employment figures in the US that eased speculation on the safe-haven metal. But don’t bet on further dips ahead of your Diwali jewellery shopping yet, say experts.
Gold prices in the New Delhi spot market fell by Rs. 280 to Rs. 31,220 per 10 gm on Friday, while December futures were down by Rs. 121 to touch Rs. 30,831 on MCX.
“Every year as a tradition, our family buys gold on Dhanteras (ahead of Diwali) and this time too, we are going to do the same. But, since the price of gold has come down, I hope to buy a better set of jewellery at the same price,” said Meena Kumar, 30, a Mumbai homemaker.
But, experts say the fall in gold prices may be a temporary blip. “Friday’s fall was a result of US employment data, but unemployment in the US is still high at 7.9%. Gold could touch Rs. 31,400 per 10 gm in the spot market by the end of November due to the upcoming festival season and investors can take the current prices as a buying opportunity,” said Hitesh Jain, commodity analyst at brokerage India Infoline.
India is the world’s leading importer of gold.