Gold prices may rebound to Rs 13,000-level in the domestic markets by June if

RELATED ARTICLES Rupee up 26 paise against dollar after initial fall Direct RBI dollar sales to oil firms possible: Rangarajan Despite RBI action, rupee drops to record low of 56 Gold demand to slow as disposable income drops: WGC Gold falls to 4-1/2 month low on Greece risks

rupee remains resilient against the US currency, experts believe.

Dollar denominated gold gets cheaper when the rupee rises against the greenback.“Gold prices have started falling from the record highs in February. The bearish trend is expected to continue, pulling prices further down to Rs 13,000 per 10 gm by June-end,” brokerage firm Karvy Comtrade Harish G said.

The Bombay Bullion Association (BBA) president Suresh Hundia expressed similar views, “Prices may decline to Rs 13,500 per 10 gm by April-end. If rupee remains stronger against the US currency, then gold rates may fall up to Rs 13,000 per 10 gm by June.”

At present, gold prices are hovering between Rs 14,500 and Rs 15,000 per 10 gm. A declining trend in gold prices may spur physical demand and gold imports in the coming days, he said, adding that India, which annually buys 500-700 tonnes of gold, did not import gold in the last two months due to high prices.

Gold prices rose to a record high of Rs 15,800 per 10 gm on February 19 and thereafter prices have been hovering around Rs 15,000 per 10 gm.

Bullion experts feel that gold prices may suffer following an expected rise in supply of gold after the International Monetary Fund (IMF) offloads 403 tonnes of gold in the open market in the coming days.

Besides, better performance of equities, which will encourage investors to shift from the yellow metal to the stocks, would also affect gold rates, they said.

Meanwhile, uncertainty in equity investment and higher advices from overseas markets, shot up gold prices by Rs 151 per 10 gm to Rs 14,421 on the bullion market on Wednesday following safe-haven buying by investors.

Silver prices bounced back on renewed industrial demand.

Gold rose in London for a second day, extending its biggest gain in almost three weeks, as decline in equities boosted the metal’s appeal as a safe investment. Gold for immediate delivery gained $8.15 an ounce to $889.40 in morning trade in London. June futures added 0.80 per cent to 890.70 an ounce in electronic trading on the comex division of the New York Mercantile Exchange.