By IANS,
Mumbai : Gold prices rose to Rs.18,350 per 10 grams ahead of Akshaya Tritiya Sunday that will kick-start the great Indian wedding season and spur demand for the yellow metal.
Traders and jewellers in Mumbai said it would touch Rs.21,000 by the festival of Dhanteras in November.
The Akshaya Tritiya festival is one of the two most auspicious days of the year to buy gold. Hindus believe they can get lasting prosperity by buying precious metals on the day. The other festival is Dhanteras before Diwali in November.
“The rise is owing to the festival falling on May 16 this year,” said Kumar Jain, Vice President of Mumbai Jewellers’ Association.
Gold is considered a safe investment at a time when there is increasing concern about the European debt crisis. “Gold is the hottest metal in the international market and hence we see a rise here in India too,” added Jain.
Speculations are also ripe that the gold rate might touch Rs.20,000 by Akshaya Tritiya, though Jain does not agree. “It may touch Rs.19,000 at maximum,” he said.
N.G. Pethe, from the eminent Waman Hari Pethe Jewellers, said: “The rise and fall of gold prices depend on the international market. In India, families prefer to buy gold for security. People think it is appropriate to store gold rather than accumulating cash.”
Jain mentioned that gold prices have seen an upward trend since 2007. “Price of gold in March 2007 was only Rs.10,800. Since then it has seen an annual increase of 28-35 percent,” he said.