Chirag Sheth, senior research consultant at Metals Focus, on Wednesday said he saw gold at $2200 per ounce by the end of this year and continued to remain fairly bullish on gold.
Speaking in an interview to CNBC-TV18, he said, “We are of the view that the correction is over and market is waiting for a bit of a trigger. We have seen $40-50 rally from the downside.”
“However, interesting point to look at is the US breakeven inflation rate, which has now crossed about 2.5 percent and we have seen historical evidences where once the breakeven inflation crosses 3-3.5 percent, gold’s characteristics hedged against inflation plays out. So that’s something which would be worth looking at,” he said.
Talking about investment demand, Sheth said, “We are seeing some sort of buying coming into China, Europe as well and even in India we have seen fairly decent improvement in both jewellery as well as the investment especially the small denomination bars and coins.”
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