MUMBAI: Gaining from safe haven buying post the Brexit referendum, gold prices are likely to remain firm and touch Rs 33,500 by the year-end due to factors like US elections, ongoing geopolitical tensions and volatility in currency markets, experts said.
"Post-Brexit, there is uncertainty that will be positive for gold. By December 2016, we expect gold to reach around Rs 33,500," Commtrendz Research director Gnanasekar Thiagarajan. Gold is expected to touch US$ 1,475 an ounce by December-end, he added.
Prices of the yellow metal surged by 8.2 per cent to US$ 1,319 an ounce on Friday after Britain voted to leave the European Union.
In India too, prices zoomed by over Rs 1,000 to rise over Rs 30,875 for 10 grams.
Thiagarajan said central banks in EU and the UK are expected to resort to monetary easing and stimulus packages to boost their respective economies. "Such measures would boost gold prices, as the cost of holding gold decreases and the potential to rise during times like this makes it more attractive compared to other risky assets," he added.
Besides this, other risk events like...