Mumbai: There is nothing much that the Government of India can do to check prices of gold, rather it should focus more on controlling prices of essential commodities like wheat and oil, feel analysts.
The metal touched a record high peak of Rs 10,750 per 10 gram on Saturday on stockists buying sparked by firm international trend.
Later it declined to a moderate ground to close lower by Rs 110 at Rs 10,650 per 10 gram by the end of the day.
"Government should cut down the import duties on crude oil to reduce the prices that are scaling up and should also check the rising prices of wheat rather than gold," Commodity analyst S Kannan said.
Though India is the largest importer of gold, it is not directly concerned to the masses, he observed.
Gold trader, Suresh Hundia also agrees that government should check prices of essential commodities rather than gold that is, he says, were beyond its control.
"The jewellery demand is not much affected and the prices of gold could also not be manipulated at the local exchanges as they are governed by the international prices," he said.
A gold analyst however agreed that there could be some check on the speculatory tendencies on the exchanges by raising the margins on the buying side but beyond that there is no way the international gold prices could be checked.
As per reports, government had showed its concern on rising gold prices and has asked Securities and Exchange Board of India (SEBI), Reserve Bank of India (RBI) and exchanges to check if there was by any chance hoarding of the yellow metal.
The rally in gold prices was supported by a firm international trend where gold touched a 26-year high level on weakening dollar and inflation concerns due to rising crude prices.
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