Gold is on a roll these days, and the country's two national stock exchanges - Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) - can't seem to let go of this opportunity.
On Dhanteras, which is considered an auspicious day to buy gold and holds special significance among the business community thanks to the customary purchases of precious metals on the day, the stock exchanges are holding a special trading session for gold exchange-traded funds (ETFs).
A gold exchange-traded fund (ETF) is an investment fund traded on stock exchanges, much like stocks, and trades close to the net asset value of the commodity over the course of the trading day.
"On the auspicious occasion of Dhanteras, BSE has decided to conduct a special session...for trading in gold ETFs in the cash segment on Sunday, November 11, 2012," BSE said in a statement.
Gold prices were at Rs. 27,130 per 10 gram and Rs. 19,740 per 10 gram on the Dhanteras day in 2011 and 2010, respectively, data show. And this time around, bullion traders are predicting that the price of the precious metal would surge 20 per cent to Rs. 32,500 per 10 gram on the occasion.
Bullion traders expect that high prices would hit sales in volume terms by up to 30 per cent compared to the last Dhanteras sales. However, jewellers like Geetanjali and P P Jewellers are hopeful of rise in sales by about 10 per cent on Dhanteras which is falling on Sunday.
"Gold rates have increased by Rs 270 to Rs. 32,040 per ten gram today taking strong global cues. Domestic prices are expected to rise by at least Rs 200-300 to touch Rs 32,500 per ten gram on Dhanteras day on Sunday," All India Sarafa Association Vice President Surinder Jain told PTI.
(With inputs from agencies)