'Gold prices may touch USD 2,000 per ounce soon'

Rising crude oil prices along with Covid-led supply chain disruptions as well as geo-political tensions and inflationary pressures are likely to lend support to gold, Motilal Oswal Financial Services said on Thursday.

According to MOFSL, gold prices are expected to move towards $2,000 per ounce (1 ounce is equivalent to around 31 gm) over the next 12-15 months. Currently, gold futures are trading at around $1,840 per ounce in New York Mercantile Exchange, which is considered the global benchmark.

 For the next quarter, gold prices are seen at $1,915 followed by $1,965. Support is pegged at around $1,800 and $1,745 zones, MOFSL said. Inflation has been one of the main highlights for 2021 and it could continue to be in the limelight next year too.

The rising inflationary expectations were increasing the distress in the market for a long time, although the panic in the market started once US Governor Powell also acknowledged the same and started to act on it, it said.