Gold Prices bounces back despite Dubai Crises

Gold prices bounced back on Saturday, a day after the precious metal tumbled at markets worldwide on concerns over the Dubai debt crisis. Gold price surged by Rs. 210 and closed at Rs. 17,825 per ten grams on Saturday as compared to Friday’s closing level of Rs. 17,615. The fresh buying of stock and current marriage demand for gold have been attributed for keeping the price levels at high level.

The Friday financial turbulence had come in the wake of fears when conglomerate Dubai World announced that it sought at least six months time from its creditors to repay its loans. Regarding the Dubai’s debt crisis impact on the Indian bullion market, renowned bullion analyst Mr. Madhusudan Daga feels that although it is too early a stage to determine the effect, there are one or two issues that would have to be considered. Firstly, one has to foresee the possibility of exodus of the Indian workforce employed in Dubai and their bringing of gold and gold jewellery into India. Another determinant of the gold prices would be whether the Sultan of Dubai and chairman of Dubai World will or will not do away with some of his gold reserves in form of sale or collateral. Otherwise as of now, the bullion market will continue to be bullish, he says.