Gold is trading above $1800 per ounce after it gained 2 percent in the previous week. The US Fed's statement that they would start tapering by the end of the year but interest rate hikes are far away has been supportive for gold.

In an interview with Manisha Gupta, Chirag Sheth of Metals Focus said even if tapering happens, we are not likely to see interest rate hikes till late 2022 or early 2023 and that is something that is supportive for gold.

"Jerome Powell mentioned that tapering is not equivalent to interest rate hike and that is positive for gold. So even if tapering happens, we may not see interest rate hikes coming in probably till late 2022 or early 2023. So that is something which is supportive for gold."

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He said correction in Indian markets has helped in improving demand. He expects gold to hit $1900 per ounce in the international markets by early next year.

"We have been constructive for some time, we do expect that by the end of this year or early next year we could see prices hit $1900 per ounce. In the Indian markets, the correction that we saw over the last month or so has helped in improving the demand. A lot of people who wanted to buy jewellery for the wedding season have already started purchasing the jewellery. Also, there is improvement in investment demand as well and that is why the market has moved into a premium. So it is a good start to the long 5-month wedding and festive season."

Watch the video for more.

(Edited by : Abhishek Jha)

First Published:Aug 30, 2021 3:17 PM IST