Analysts are predicting renewed support for gold prices as it leads towards all-time highs in the international markets, amid an escalation of the trade war between China and the US witnessed the rally.
Spot Gold Price rose over 3 per cent to a six-year high of $1,554 on the Comex in London on Monday. Analysts project bullish movement for Gold. World’s leading bank JP Morgan has projected that spot gold prices may increase to $1,950 per troy ounce level within one year, a fresh all-time high.
Analysts are of the opinion that gold’s bull cycle is underway which may lead to other asset classes including equities getting suppressed.
Gold prices in Local Sarafa Market gained sharply on Saturday to touch record hive levels of Rs 88,500 per Tola. With a record increase in London/Tokyo today, local Gold Price is expected to close the day around Rs. 89,500/ Tola.
Gold prices are also increasing due to the weakness of the rupee. Gold is expected to reach Rs. 110,000/tola in near future as Bullish rally continues.
According to commodity experts, gold becomes a safe asset whenever there is increased uncertainty and risks in global markets. Moreover, the dollar outlook also looks good as the US economy is performing better compared to others. This will lead to increased investment in Gold.
Hence, safe Investments are going into Dollar and Gold.