Gold prices continue to fall for six straight weeks since 2001

 

Chennai, July 31 Gold price continued its downward slide for sixth straight week after 16 years on Friday, touching Rs.2,356/gram (22 carat), said a jeweller.

"There was a continued fall in 2000 and also in 2001. After that this seems to be longest period of the gold prices falling," N. Anantha Padmanabhan, managing director of NAC Jewellers, told IANS here.

The price went down by Rs.4 per gram from Thursday's rate, said industry officials.

"The trend is that the prices would continue to go down. When the global prices touch the per ounce mining cost (around $1,080 ounce), then the prices may stabilise as the mining companies may stop operations," Madras Jewellers and Diamond Merchants Association president Jayantilal Challani told IANS in Chennai.

"Though the price is falling, but business is slow. People are expecting price to fall further and are holding back their purchases," Rahul Gupta, director, PP Jewellers told IANS in New Delhi

Asked about the impact of price declining on the business, he said: "Gold prices have risen only in the last 10 years. More than the price range we are now looking at price stabilising. That will help us get back consumer confidence."

In the national capital, gold was trading around Rs.24,700 per 10 gram on Friday.

According to Challani, the fall in prices may not impact the jewellery trade as they do not stock up the yellow metal.