Gold has begun the year on a promising note, after dropping around 2 per cent in rupee terms in 2013. In fact, international gold prices lost more then 30 per cent in 2013 and the precious metal dropped for the first time in 12 years.

It's likely that gold may not fetch whopping returns as in the past 12 years (except 2013), as robust economic growth around the globe, has shifted investor attention to equities.

In India, much would also depend on how the rupee trades against the dollar, given that it is one of the most important factors in determining the landed price of gold.

While international prices were down more then 30 per cent last year, Indians did not get gold cheaper simply because the rupee depreciation against the dollar, enured that gold buyers did not benefit.

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