BOMBAY: The price of standard gold slumped by Rs 95.00 per ten grammes to Rs 3325.00 ($194) in the Bombay bullion market in reaction to the government’s decision to abolish the gold control act.
Similarly, 22 carat gold was nominally lower at Rs 3043.00 from Monday’s Rs 3135.00. Panic selling dominated the market and there were no takers for gold, according to Shantilal Sonavala, President of the Bombay bullion market.
The price of gold nosedived on heavy stockiest offerings amidst fear of a further drop in prices as predicted by market circles.
Sonavala said the gold market was likely to remain upset for three months when legal formalities — scrapping the act — were completed.
Meanwhile, Ismail A. Motiwala, president of gold jewellery exporters, association, welcomed the decision to abolish the Gold Control Act.
The measure would give a boost to export of gold jewelry from India. Gold jewellery worth Rs 2750 million was exported this year and by the next financial year, “we will reasonably expect an export performance of Rs 5000 million,” Motiwala said.
Article extracted from this publication >> March 30, 1990
