More interest rate cuts by the US Federal Reserve to protect its slowing economy are likely to strengthen gold prices further with the metal being a safe haven for investors having offered handsome returns in the last year-and-a-half.
The country's Rs 60,000-crore (Rs 600-billion) diamond industry is likely to lay off 200,000 workers this year and with it the dream of making India a processing hub, according to Sanjay Kothari, chairman, Gems & Jewellery Exports Promotion Council, if the government does not frame favourable policies.
Gold hits Rs.11,360, thanks to rate cuts by US Fed Bank and a languishing dollar.
Ravindra Chauhan, a regular commodity investor, is now regretting his decision to invest in gold, which fetched him only 6.08 per cent in the last one year because of a stronger rupee. He says that most banks' fixed deposits would have made him richer by at least 9 per cent during the same period with little holding risk.
Tapping one target customer in the US would equalise the volume of roughly 100 customers in the Australian, Arabian and Japanese markets. Besides, investment to tap 100 customers in the aforementioned potential markets would be much higher.
The move follows anticipation of lower sales in the US market in the wake of the termination of generalised system of preferences, the US incentive that helped domestic jewellers boost exports to that country.
Prices of almost all industrial commodities, barring cotton, are likely to cool down in 2008, after handsome gains in 2007, when a supply glut is expected to supersede demand.
Gold recovered 0.5 per cent or $2.90 in the end of last week but the chances of further weakening of dollar has cast a shadow on its future price.
Mumbai-based real estate developer, Royal Palms, is developing Mumbai's first Gem & Jewellery Special Economic Zones on a private land at an expenditure of Rs 400 crore.
Gold demand in Mumbai has declined by 50 per cent during the last three days to approximately 500 kg compared with one tonne during the normal season.
Gold prices in Mumbai hit a five-month low at Rs 8,800 (99.5) and Rs 8,850 (99.9) per 10 gram on Thursday following a decline in the global prices and falling demand in the domestic market.
Will gold touch the psychological barrier of $720? Investment funds are bullish but cautious.
Hindustan Copper, a public sector major, raised the provisional prices of its products across the board by 15 per cent following a similar rise witnessed in the benchmark London Metal Exchange prices.
The Multi Commodity Exchange of India has decided to start a one-year full-time certificate course on commodities in March this year in Mumbai.
© 2026 Rediff.com - Investor Information - Advertise with us - Disclaimer - Privacy Policy - Sitemap - Feedback - About us - Terms of use - Grievances