The current trend of the value of gold in India is expected to stay below Rs 35,000 for the few weeks remaining in the calendar year of 2012 but analysts expect that this would surge further beyond the Rs 35,000 mark in the near future. Gold on Saturday closed at an all-time record high of Rs 32,850.

Silver on the other hand has also increased to close at Rs 62,960; Rs 770 higher than the previous day. Though the prices in the international market per ounce have been moderate this year, it was the domestic margin which was surging due to the depreciating value of Indian Rupee against dollar. Against the green currency, on Friday, Rupee stood at 55.52.

Analysts said that if not for the value of Rupee against Dollar in the trade market, gold prices in the nation would have been at least 15% lower than today’s price. Demand for the yellow metal has been on the rise since quite a few days with banks purchasing more gold, Eurozone turmoil and then the commoners who preferred to buy gold as a mode of safe investment over time.

The trend of the gold prices rising would continue for another few months until the consolidation of the rupee value. However, the rate at which the gold would increase has fallen to 12% at most against the 15% compared to last year. Gold prices may even touch Rs 35,000 by year end, one bullion market analyst opined reasoning that the demand would plummet sharply after the marriage season due to liquidity issues.

(AW- Anil)