On March 24, I had written about a possible weakening in gold prices. At that time, gold was trading at about $1600/ounce in New York, down from the all-time highs of $1900-plus. Since March 22, the price of gold has fallen by another 15 per cent, down to $1350.
Despite the fall, it is psychologically difficult for Indians to sell gold, given traditional confidence in the yellow metal. In addition, gold has seen a 10-year bull run, from about $300 in 2002 to over $1900 in 2012. The temptation to buy on dips is high.