Gold prices may reach $2,000 by March 2012: Scotia

Last Updated: Thursday, November 24, 2011 - 22:41

Mumbai: Gold prices are likely to touch USD 2,000 by March, driven by the global economic crisis, while gold imports may reach 1,000 tonne, a senior SocotiaMocatta official on Thursday said.
"Investor demand has compensated the decline in the jewellery consumption. The rising gold prices, which has boosted the investors appetite, may result in close to 1,000 tonne imports of the yellow metal," Rajan Venkatesh, Managing Director, India bullion, SocotiaMocatta, a part of the Bank of Nova Scotia, told reporters on the sidelines of FICCI 'Gems and Jewellery Conference' here.
The current US and the Euro zone crisis, he said, will keep the gold prices bullish and they are likely to reach USD 2,000 an ounce in another 3-4 months.
"People are losing faith in cash as load of the US currency can be printed," he said.
The gold prices here on Thursday ruled at Rs 28,500 per 10 grams, while it was USD 1,695.90 an ounce in the global markets.
On silver, Venkatesh said, the imports will be slightly lower than last year's 3,030 tonnes due to the rise in prices.
"Silver business is not that significant (by volume)... a couple of months ago it was very good when prices had tapered off," he said.
The demand will improve if the silver prices comes down to Rs 40,000-45,000 a kg, he said.
Silver prices on Thursday stood at Rs 56,250 per kg here and in the global markets it was at USD 31.88 an ounce.


First Published: Thursday, November 24, 2011 - 22:41

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