Gold Prices To Rally Further

Gold prices which were at a near record of Rs 41,100 per 10 grams are likely to move even further, as the Caronavirus spreads.

A Kitco gold survey on gold of fifteen market professionals showed that 93%, called for gold to rise. Only one voter, or 7%, called for prices to fall, while nobody was neutral.

Clearly, the trend for gold is likely to remain bullish. In India, the rupee has over the last few weeks fallen, which has also propelled gold prices to move higher.

When the rupee drops, gold prices tend to move higher. Last year, gold rallied substantially and was the best asset class even ahead of equities. It is likely that the trend would continue, but, do not expect gold to give whopping returns from here.