Bullion Today: Gold Market trend

Gold finally fell below Rs. 30,000 in the spot market on Thursday. there were many investors who had a eye on the Gold Spot prices. But though has started ranging in Rs. 29,000 but according to the analysts its still not an option for investing. Analysts predict the metal is not going to give a fruitful return, infact cautionary notes suggest that many gold investors may end up in losses.

Spot gold was ranging Rs. 29,872 on Thursday. 

The price of gold is now based on the  international market i.e. in US markets and the European market rather than on the fundamentals. The loss assumed on the investment of Gold is to be around 5-10%.

According to the reports of the world council, India's demand for gold has reduced by almost 38% since April-June from a year ago, while the average rise in price has been by 33%.

The reasons behind fall in the price of the yellow metal has been partially because of the strike by the jewellers' in March and April to protest against the increase in the exercise duty on the unbranded jewellery in the Union Budget. however, the major reason for the fall in the demand is due to the highness in the price.

Presently, many investors are investing in gold as it's considered to be a safe investment. But they are unaware of the fact or the risk which may arise if  the European or US economy recovers. If this happens these investors could move towards riskier investments, resulting in a crash in gold prices.

On the other hand, if these economies do not recover, gold prices have already moved to a level they cannot move beyond, leaving little scope for healthy returns.

"In India, investor demand is low. Demand is by consumers who are buying gold for social purposes like marriage," said Shah. So the sellers are eye pounding over the marriage season where they are expecting a rise in the sales of Gold.