Gold demand is expected to pick-up after August with its price expected to touch the Rs 13,500 per 10 grams mark, a top industry official said in Mumbai.
"Gold prices may range between Rs 12,500 and Rs 13,500 in the near future. Demand, which is flat presently, will pick up once the festival season commences after August," said Bombay Bullion Association (BBA) President Suresh Hundia.
Gold price has already touched the Rs 13,100 per 10 grams mark in the bullion market on Wednesday on sustained buying by stockists and jewellers, triggered by strong global markets.
The most auspicious days for buying gold will commence around the time of festivals like Ganesh Chaturthi, Dussera and Deepavali which fall between August and October.
Gold price is co-related with crude oil prices and goes up in line with the crude prices, Hundia said.
Trading activity in gold picked up after reports that crude oil rose to a new high of $144 a barrel amid concerns over a weakening dollar and tension in the Middle-East.
“Hedge funds were also shifting from stocks to surging bullion, considering it a safe haven,” analysts said.
We expect gold prices to continue its upside till $965," Kotak Commodities' bullion analyst, Raghavan Sundararajan, said.
Sundararajan recommended buying MCX Aug gold between Rs 13,150 and Rs 13,170 targeting Rs 13,600 with a stop loss of Rs 12,975.