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Gold likely to touch Rs. 21,300 by May'

Gold likely to touch Rs. 21,300 by May' 
Financial services provider SMC Group on Sunday said gold and silver prices are expected to touch Rs. 21,300 per 10 grams and Rs. 52,000 per kg, respectively by May.

With FIIs and other major investors gradually withdrawing their money from the capital markets, substantial fall has been witnessed in Sensex and Nifty.

Due to this "gold and silver are likely to remain major epicenter for investors even in stiffer price bracket," SMC COMTRADE Managing Director D K Aggarwal said.

The stock market has plummeted by 13.69 per cent in the year yet.

FIIs total investment in debt and equity has come down to Rs. 1.37 lakh crore so far in the current fiscal from Rs. 1.42 lakh crore in 2009-10.

Investors would continue to park their surpluses in gold and silver as demand for the precious metals is likely to pick up in the near future, Aggarwal said.

On February 24, silver prices touched Rs. 50,500
per kg, while gold surged to an all-time high of Rs 21,240 per 10 grams on brisk buying by jewellers for the ongoing marriage season.

"Bullion trade will remain the preferred epicenter of like in equities are likely to lose sheen in view of emerging market conditions," he said.

He also said that ongoing unrest in Middle East, which is fuelling crude oil prices amid plunging dollar index are making room for more upside in bullion.

Even, currency movement is narrating the similar story, he said, adding that most of the currencies like Australian dollar and Canadian dollar are trading in the upper range.

Further, Aggarwal said the bullion prices will touch the estimated levels since Finance Minister Pranab Mukherjee has dropped hints that he would put more purchasing power in the hands of common man through budgetary measures....