Gold price may be in the last leg of its 10-year rally with the possibility of touching Rs 23,000 per 10 gm, if unexpected geopolitical tension coincides with a similar decline in the rupee in the next couple of months, said bullion analyst, Mr Bhargav Vaidya, who is also member of the management committee of the Bombay Bullion Association.
“In an ideal situation, Indian gold prices may not rise more than Rs 20,000 (per 10 gm) as the rupee is likely to appreciate. However, if there are any unexpected geo-political moves then gold prices may shoot up to Rs 23,000 per 10 gm within the next two months,” Mr Vaidya said.
He said in India, gold price may rise to Rs 20,000 per 10 grams if international gold prices rise to $1,300 per ounce.
Gold has been rallying in the past few months to new record highs due to safe-haven buying arising out of various global factors such as North Korea, Iran tensions, Eurozone worries and their impact on currencies and US economic worries.
Reflecting the safe-haven demand, gold holding with the world’s largest gold exchange traded fund SPDR GoldTrust rose 204 tn to 1,308 tonnes on Friday.
“Recently, gold prices touched a record high of $1,260 an ounce in the international markets, which is expected to touch $1,300 an ounce in a month or two.” — NW18