Gold prices were constantly rising over the past six months with minor to negligible fluctuations but the declining trend was evident during the last week when the prices touched the lowest on Saturday going below the Rs 30,000 mark per 10 grams. This is a new record six month low for the prices in India and the link between the recovering US economy is clearly visible.

Though the decline may be short term to say the least, the sudden decline would be supported by the global economy, predominantly the US. The prices in March of 2013 would stay at under the Rs 30k though the international prices may be much lower.

On Saturday gold was recorded at Rs 29,794 per 10 grams, while the spot market price was around $1,610 an ounce, for the first time after August. The price is expected to drop further before consolidation. The effect of the import duties though high would be countered by the depreciating price of gold and the increasing rupee value.

Though the analysts say that the consumers will wait till the prices drop further, there is a good chance that if there is a sharper drop, the dull gold trade will be buzzing with activity.

(AW- Anil)