Buyers of jewellery may have a reason to cheer as gold prices dipped to the lowest level since July last year, just a few days ahead of the festive season.
Gold prices dipped below Rs.27,000 per 10 grams Saturday with the yellow metal trading around Rs.26,970 per 10 grams here.
"The main reasons behind this downfall are US economy is improving and dollar is improving. The geo-political differences are also easing. All the global stock markets are performing fairly well and are going up; so people are investing in those rather than gold," Pankaj Parekh, vice-chairman, Gems and Jewellery Export Promotion Council, told IANS.
"The price might go further down," he added.
Meanwhile, the rupee has also edged up to end at a one-week high of 60.81 against the dollar.
In the national capital, gold of 99.9 and 99.5 percent purity dropped by Rs.40 to Rs.26,970 and Rs.26,770 per 10 grams respectively.