Gold prices at new all-time high, entering years-long bull run: Analysts

Investment in precious metal safe based on outlook for India in the next four months

Gold hit an all-time high on Monday as ties between China and the United States rattled investors, boosting the allure of safe haven assets. The metal was trading at $1,933 per ounce in the international market and in India it was above Rs 50,000 per 10 gram. A gold market cycle usually last 8-10 years, indicating that a bull run is underway. The last rally started in 2001 and ended in 2011, when prices went up sent times from the 2001 level. After peaking, prices fell 46 per cent and consolidated for years.

“Gold has entered a bullish phase that can last several years. We also think that there is better than 50% probability of gold approaching $3,000 in this cycle,” said US-based analyst Nigam Arora, author of the popular The Arora Report, a newsletter service on investments.

Christopher Wood, global head of equity strategy at Jefferies, last week said in a report that gold could rise to $4,000. Imports, in US dollars, decide gold price in India. The dollar may weaken due to Federal Reserve policies and the U.S government’s government, giving gold tailwind. Real interest rates are negative, helping gold.