MUMBAI: Gold will rebound from its two-year low and rally as much as 27 per cent by December as scepticism over the global recovery increases demand, according to billionaire Indian jeweller T.S. Kalyanaraman.
Source from (Business Times): http://www.btimes.com.my/Current_News/BTIMES/articles/indjew/Article/
Published: April 21, 2013
Bullion, which lost 15 per cent this year as it plunged into a bear market, will advance to US$1,800 (RM5,472) an ounce, said Kalyanaraman, chairman of Kalyan Jewellers.
The metal hasn't traded at that level since November 2011. Gold slumped by the most since April 15 1983, prompting shoppers in India, the world's biggest consumer, to advance plans to buy wedding jewellery, while retail sales tripled in China.
Europe's debt concerns and a weaker dollar may reignite demand for gold among investors, according to Dominic Schnider, head of commodities research at UBS AG's wealth-management unit.
"Investors, specially fund managers, will start collecting gold since they have got an excellent price range to move their funds," said Kalyanaraman, whose closely-held Thrissur, Kerala-based Kalyan Jewellers is valued at US$1 billion.
"The domestic market has picked up strongly."
Gold, which rallied as much as 2.6 per cent to US$1,426.05 an ounce yesterday, may climb to US$1,550 within six months on physical and investment demand, said Mark Pervan, global head of commodity strategy at Australia & New Zealand Banking Group Ltd, yesterday.
Still, Barclays plc said bullion may be among the weakest commodity performers over the next few years.
A rush by Indian consumers to buy gold jewellery and coins after the slump will boost imports this quarter, said Mohit Kamboj, president of the Bombay Bullion Association Ltd, on Thursday.
India's overseas purchases may jump 36 per cent to 305 tonnes in the three months ending June from 225 tonnes a year earlier, Kamboj said.
Imports may climb as much as 20 per cent this month from year earlier, he said.
But producers face closing mines or shutting themselves down after the slump made about 15 per cent of miners unprofitable.
Barrick Gold Corp and Newmont Mining Corp, the two largest producers, are among companies in the FTSE Gold Mines Index that have collectively lost about US$169 billion in market value since bullion peaked in 2011. Bloomberg
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