MUMBAI: Bringing cheer to retail buyers, gold prices in India are likely to decline to Rs. 25,500-27,500 per 10 gram level by July 2014 on the back of bearish international sentiment towards the yellow metal and a rising rupee.
From Rs. 30,300 per 10 grams at the beginning of May it has fallen over 10% to about Rs. 27,000. In the Mumbai bullion market on Wednesday, standard gold (99.5% purity) fell Rs. 30 to Rs. 26,770 per 10 grams while pure gold (99.9% purity) was down Rs. 35 to Rs. 26,915 per 10 grams. In Delhi, however, standard gold prices appreciated Rs. 40 to Rs. 27,240 per 10 grams.
Gold traders are pinning their hopes on the Narendra Modi government bringing down the import duty to 6% from 10% within a few weeks, thus, leading to a further fall in prices, a report in the Hindustan Times said.
Any further appreciation of the rupee against the dollar will also lower the domestic price of gold by making imports cheaper in rupee terms.
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