GOLD PRICE EXPECTED TO RISE

All Sindh Saraf and Jewellers Association (ASSJA) President gave an interview to a newspaper and said that Gold prices in the market are expected to rise again in March next year. He further said that this current fall in gold price is rather temporary and this decrease is expected to stop at the end of current fiscal year.

            Gold’s price of 10 grams was recorded as Rs. 45,428 on November 15 which fell to Rs. 43,714 on December 9. During this period, gold price in international market also fell roughly from $ 1,290 to $ 1,240 per ounce.

            Theoretically, the price of gold is inversely proportional to the dollars’ worth. In other words, the value/price of gold will decline if the value of dollar increases and vice versa.

            Fluctuations started in gold prices internationally after US Federal Reserve decided to resort the quantitative easing in the aftermath of global recession of 2008. It started to purchase $ 85 billion worth Government bonds and other financial assets every month which kept interest rates at a low level. This decrease in the interest rates caused increased investment in gold raising its demand and price by 60%. In 2008 gold price was $ 840 per ounce.

            According to a wall street journal report published on Tuesday, financial powerhouse Goldman Sachs doesn’t expect the US Fed to start raising interest rates until 2016. This will decrease the price volatility of the gold, Analysts believe.