Gold fell to Rs 38,970 per ten gram at nearly three-week low on Tuesday in the Delhi Sarfa market. If you are planning to buy gold for a wedding or festival, then this is a good time for shopping, because if the expert believes, 10 grams of gold can go up to Rs 42000 by Diwali.

Gold price may reach 42000 by Diwali

Shankar Sen, vice-president of Gems & Jewelry Trade Federation and MD and chairman of SENCO Gold, told Live Hindustan that 10 grams of gold could reach Rs 42000 by Diwali and festivals. Now is a good time for customers to buy gold because in the long run, the price of gold will increase. He said that due to the trade war in US-China, China is buying gold for hedging due to which both demand and prices of gold in the international market are increasing. Its effect is also visible in the domestic market.



Prices will rise further

Vimal Goyal, president of the Delhi Bullion and Jewelers Welfare Association, said that gold prices have sprung up around the world due to 'recessionary fears'. He said that during Diwali, gold can reach Rs 42,000 and silver can reach Rs 52,000. All India Bullion Association Vice President Surendra Jain believes that the depreciating rupee is also supporting gold prices.

Gold will set a new record till Diwali

On Tuesday, 10 grams of gold fell by Rs 38,970 and silver by Rs 100 to Rs 48,000 per kg. Analysts predict that gold will continue to boom and its price could set a new record till Diwali. In this calendar year, gold has given more than 20 percent profit to the investors, while in 2018 the investment return was around 6 percent.

Gold gave so much profit

On December 31, the price of gold in Delhi was Rs 32,270 per ten grams, which is running at 39,000 today. In this way, gold has given more than 20 percent return to investors in the year 2019. Similarly, silver has also reached the level of Rs 50,000 per kg in this calendar year from Rs 39,000 per kg. Thus, precious metals have given better returns to investors than expected.



Why are prices increasing

Bachhraj Bamawala, former chairman of All India Gems and Jewelers Traders Federation, believes that both domestic and international factors are behind the rise in gold. Investors' inclination towards gold has also increased due to the US-China trade war, global softening and Brexit (issues of Britain exiting the European Union).
Bamawala believes that by the end of this year, gold can cross the Rs 41,500 per ten-gram level. He said that the fall in the rupee against the dollar is a major reason for the rise in gold prices. However, at the same time, he said that gold is fast at this time, but the price rise can have a negative effect on the sale, which can reverse all the situations.