MCX Gold futures for August Delivery opened today at Rs 23,010 per 10 grams and is trading in the range of Rs 22,940 – Rs 22,990 per 10 grams.
Experts suggests that investors need to maintain caution while investing into gold considering the fact that the price of gold will not go up indefinitely.
Gold is trading at all-time high these days. It can be a bubble which may burst any point of time.
Fact cannot be ruled out, gold is considered to be a safe investment during economic instability.
Recent sovereign debt crisis in Europe and uncertainties in US economy made investors turn more favorable towards Gold.
Any positive news from global economy can turn gold rally into opposite direction.
There is also some speculation about a third round of quantitative easing in the U.S. if economic conditions remain weak, although Federal Reserve Chairman Ben Bernanke commented last week that policy-makers are not ready to act at this time.
If US reaches on debt-ceiling deal, investors can see some correction in the prices of gold.