Gold has been in a consolidation mode from last Diwali to this Diwali, and in the past few months have witnessed some choppiness amidst volatility in U.S. Dollar and bond yields. Gold being a non-yielding asset has always reacted first in case of any change in interest rate and hence even now with so much panic in market regarding tapering and policy tightening metal prices have held its ground on the back of low rates.

Commenting on the Gold Outlook, Motilal Oswal Private Wealth stated, "It will be absolutely important to track Fed's actions and comments and its impact on the U.S. Dollar and yields. Any comments regarding the tapering actions, interest rates, inflation expectations will be important. Economic data from the U.S. like, Industrial growth, Retail Sales and especially the Jobs growth will be crucial to watch. Along with that, keeping an eye on the updates regarding the spread of Delta variant situation and comments shared between U.S. and China will be equally important."

"We continue to maintain our positive bias and Gold price is expected to reach a level of USD 2000 on COMEX; and on domestic bourses levels of 52,000-53000 could be witnessed over a period of next 12 months," it added.

Disclaimer: IRIS has taken due care and caution in compilation of data for its web site. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.