Gold prices may touch Rs 22,000/ 10 gms by year end: Assocham

ASSOCHAM

New Delhi, Sep 12 (PTI) Gold prices in India are likely
to touch Rs 22,000 per 10 gms by year end, as the cash-rich
financial institutions like mutual funds may divert
investments to bullion in view of uncertainty in the stock
market, industrial body Assocham said on Sunday.
"Major players in the capital market including mutual
funds are holding huge cash balances, waiting to invest in
anticipation of corrections in the equity market. Until
corrections resume, these funds would go on making a beeline
to commodities, more specifically bullion, which has taken
gold and silver to all time high," the chamber said.
Another reason for rising prices is the Euro-zone economy
and the US, which are not providing conducive investment
options, making way for investment in precious metal.
"This is likely to continue in the foreseeable time,
raising hopes for a further hike in bullion prices," it said.
Assocham has projected that "gold prices (will) move at
the level of Rs 22,000 per 10 gms by year end and they will
hover around Rs 21,000 during festive and marriage season".
It also said the expected increase in inflationary
pressures across the world had forced sizeable investors to
invest in gold, further making case for jump in its price.
Currently, gold prices are hovering in the range of Rs
19,550 per 10 gms. PTI RR PRY
MRD


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