Mumbai, May 11: Gold prices are expected to rise as demand for the precious metal considered as a safe-haven investment in times of financial uncertainty will continue to remain, an analyst said here.
“Despite the strengthening of the dollar, gold prices could continue to rise as demand for the precious metal will continue to remain,” Angel Commodities’ research analyst, Ms Reena Walia, said.
Gold prices have been in a bullish mode since a low of Rs 15,950 per 10 gram witnessed in January. Prices have witnessed a sharp rally, rising by almost 12.82 per cent to trade between Rs 17,800-17,950 levels at present.
The announcement of a $1-trillion package by European policy-makers provided some support to the ailing markets. This also led to selling pressure in the precious metal which had rallied in the last week on the back of financial uncertainty which raised demand for gold as a safe-haven asset.
The trend in gold prices remains upward and “we expect concerns over the euro zone debt market to continue despite the bailout. The rescue package to bailout the euro members are bigger than that provided to bailout large companies in the US, Ms Walia said.
“The crisis in euro-zone is something worse than what the US underwent. This is because the US policymakers needed to bailout large companies and banks. But the major problem that the EU policymakers face is that of bailing out countries altogether,” she said. — PTI