Experts are seeing fresh support for gold prices leading it towards all-time highs in the international markets, even as an escalation of the trade-war between the two largest economies, US and China, saw the price of the yellow metal rally 700-800 points last week.
Gold rose over 2 per cent to a six-year high of $1,537 on the Comex in New York on Friday.
Kotak Commodities head Ravindra Rao says he won't be surprised if spot gold prices shoot past the $1,950 per troy ounce level to log fresh all-time highs.
"Gold prices are indicating that the global worries are still intact. This worry has started since last 2-3 years, now that is escalating. If we compare gold with S&P and gold with bond yield, still the ratio is very low, so gold has a lot of steam left to go much higher," Rao said.
He emphasized that gold's next bull cycle is underway which might see other asset classes, mainly equities, get suppressed.
Indian markets have already seen several highs since the US Federal Reserve announced a cut in policy rate earlier in the month.
Gold futures prices on the MCX gained sharply on Friday to touch record levels of Rs 38,821 per 10 gram.
"In a month or so we can see gold per 10 grams soar to Rs 40,000-41,000 but if the rupee does not support then it might not," Rao said.
Gold prices are also gaining owing to the weakness of the rupee.
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