Gold prices see major drop ahead of festive season

Good news for buyers as the prices of gold have seen a sharp decline in the last couple of days. As per official sources, the prices of the yellow metal have dropped by around Rs 2,000 in a span of one month.

In Bhubaneswar, gold was being sold at Rs 55,000 per 10 grams for the 22-carat in September and now the prices have come down to Rs 53,000. In the first five days in October, the price of gold has seen a further decline of around Rs 1100. Not only gold, the prices of silver have seen a drop of Rs 7000 per kg. It is now being sold at Rs 70,000 per kg.

As per experts, the surge in the US dollar rates has put pressure on the precious metal.

“Gold will be a better bet in the long run and it will recover. The investors should opt for paper gold, gold bond of around 5 to 6 per cent of the portfolio instead of buying ornaments. There is scope for investment in gold sovereign bond and can expect some good returns. One can go for ornaments if they have the requirement,” said economist, Trinath Lenka.

A jewellery store owner in Bhubaneswar said, "Crude oil price has increased in the international market and investors are currently investing in that. And we expect a further drop of 5-10 per cent in the coming days."

Another manager of a store said that if the present trend of investment in crude oil continues, gold prices will see a further drop of Rs 1500-Rs 2000.

Many believe that there is a possibility of a further drop in the prices of gold by another 5 to 10 per cent in the coming days. It is said to be the perfect time for investors to invest in gold.

As the festive and marriage season is on the cards, it will also be a win-win situation for the consumers to buy gold as several shops are offering discounts on making charges along with other offers.