Gold price share no direct relationship with elections, nonetheless as majority of analysts are anticipating a return of current NDA led government back to power after election results are announced on May 23 and with it, the Indian currency is expected to rise a bit.
And in its wake, for a short period, the gold price is likely to fall and this should be seen as a buying opportunity. Gold could narrow down in price to between Rs 31,600 or 31550.
In a leading business daily, one of the analysts from the leading brokerage firm is cited as reiterating, "Rupee is stuck in a range for the last three to four months. Neither it is going above 71 nor it is going below 68.50. Even international gold prices are not going anywhere. So even the international gold prices will also depend upon election results as the rupee value will change. Spot gold has limited downside from here. It has got support at 1270-1280 dollars. So largely it will be supportive for the gold prices"
For some time now, rupee despite the headwinds from the global front has factored in return of NDA government and thus has remained high. But the huge demand anticipated in the Q2 of 2019 is expected to limit the low side in gold. And for the next week, the upside of Rs. 32,500 per 10 gm of gold is foreseen.