Mumbai:Geo-political uncertainties, sustained Central bank buying and weak rupee against US dollar will keep gold under pressure and are likely to push the prices up to Rs 42,000 per 10 grams level by the end this year, according to analysts.
"Geo-political uncertainties emerging from the Middle East may continue to underpin gold prices going ahead to USD 1,650 an ounce in Comex markets and Rs 42,000 in MCX," Commtrendz Research co-founder and CEO Gnansekar Thiagarajan told PTI here.
The yellow metal is likely to continue to remain bullish till the end of the year mostly due to sustained Central bank buying, geo-political uncertainties and possible year-end squaring of positions in equities boosting appeal for safe-haven gold, he added.
Gold prices were at Rs 38,302 per 10 grams in MCX, while it was at USD 1,506 in Comex.
Motilal Oswal Financial Services (MOFSL) VP-commodity Research, Navneet Damani said, this year has proved to be one of the best years for gold returns as prices have risen by 15 per cent on the domestic front, getting some support from weakness in the rupee that has fallen by 1.4 per cent against the USD.
"We expect that positive momentum for gold could continue further, but the pace of rally could get measured as uncertainties related to trade war is taking back seat. This slowdown in major economies could push central banks to remain dovish for an extended period and that will support gold prices," he added.
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The ease off in trade war could lead to some correction in prices, however, the prices remain bullish and expect to move higher to test previous highs of Rs 39,500 by the end of the year, he pointed out.