Gold prices likely to glitter more on festive demand

Mumbai, Nov 4 (UNI) Increasing festive demand may further fuel the soaring gold prices to past over Rs 11,000 per ten gram level this week, market analysts observed.

The gold prices hit almost the one-and-a-half-year peak of Rs 10,340 per ten gram last week and with the expectation of stipulated buying activities on Dhanteras and Diwali can provide a further push to the gold prices by Rs 600 to 800 per ten gram in the coming week, analysts said.

The yellow metal has rallied on good festival demand from ornament makers and gold coin buyers. The upward rally of gold prices expected to further continue on some other factors including weaker dollar and increasing crude oil prices in overseas markets, besides the increased festival demand, Bombay Bullion Associaton (BBA) vice pesident Harmesh Arora told UNI.

There were bullish trends in gold in London, New York and other Asian markets last week, which reflected in domestic prices. In overseas, gold hit a 28-year high of USD 808.5 per ounce last week.

Moreover, foreign and domestic investors have shown greater interest in investing in gold after the US Federal Reserve cut the key rates, Mr Arora pointed.

Marketmen maintained that weakening dollar and rising crude oil also derived the market sentiments. Gold prices had crossed the psychological barrier of USD 800 an ounce and oil prices zooming around USD 100 per barrel in the overseas markets.

Further, the gold prices in domestic market is likely to touch near Rs 11,000 levels, while it may hit 850 dollars an ounce in the overseas market in the coming sessions, analysts asserted.

UNI