Where are gold rates headed now? Does investing in gold make sense at this juncture? Will it be long before the precious metal revisits all-time highs?

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Analysts are divided over the short-term prospects of gold as an investment and see rates in the Rs 47,000-60,000 per 10 grams or $2,270-2,075 an ounce zone.

It has been a bumpy ride for the international gold benchmark rate in the past two years thanks to the pandemic, and the Russia-Ukraine war, which is in its ninth week.

Wild swings in the US dollar, as the Fed and other major central banks move to lift COVID-era interest rates, have also kept investors on the edge.

Spot gold has risen 6.7 percent on a year-to-date basis.

It has already bounced back more than 34 percent from its pandemic-era low of $1,451.5 per ounce (Mar 16, 2020), but is still more than six percent below its record high of $2,073.4 (Aug 7, 2020).

So should the patient investor eye these numbers?

As long as geopolitical uncertainty persists, the yellow metal will continue to thrive. That is the message from Sugandha Sachdeva, VP-Commodity and Currency Research at Religare Broking.

"Apart from the geopolitical uncertainty, intensifying supply chain strains are feeding into higher inflation figures across the globe. The widespread price pressures will keep gold in demand as a hedge against inflation," she told CNBCTV18.com.

She believes gold holds a positive bias as a short-term investment but warns that volatility may intensify, once again.

Gold rates: The road ahead

Ravindra Rao, VP-Head Commodity Research at Kotak Securities, views gold as a two-sided story now, with hawkish Fed comments on one hand and the Russia-Ukraine war on the other. He expects the rates to stay in a range.

"It might get some direction after the Fed's May meeting. Till then, spot gold may trade between $1,970 and $1,900. On MCX, the range would be Rs 51,600-53,150," he told CNBCTV18.com.

According to Motilal Oswal Financial Services, gold could go to Rs 54,000 per 10 gms or $2,000 an ounce once again but it may be difficult for it to hold on to these prices.

The brokerage advises against going aggressively long from a risk-reward perspective.

Buying opportunity (not fully) missed

You may have missed the bus but you can still board it.

It is not too late to book profit in gold, as the prices have corrected, said Navneet Damani, Senior VP-Commodities Research at Motilal Oswal Financial Services.

"It's not the end of the bull run... Any twist in war could trigger one more leg of upside, where one can still expect to book profits at Rs 53,400-54,000/10 grams... It's an opportunity gone but it is not too late," he told CNBCTV18.com.

But here comes his word of caution: As far as the buying opportunity goes, the cream of the rally has already been built into the price.

"If the Russia-Ukraine war, which the world is calling a third world war, has not able to make gold move 20-30 percent then I don't think there's any other factor that can give (gold) a major boost from here on. There are small factors that will continue to support gold but an outright bullish bias might not hold true. For someone holding gold, there seems to be limited upside in the next 2-3 years and the returns are going to be compromised. A fixed deposit or an equity portfolio can give better returns," said Damani, who suggests those holding gold to exit at Rs 53,000-54,000.

Instead, he sees a better opportunity in silver than in gold from a tactical point of view.

'Road not yet smooth for gold'

Russia's move to invade Ukraine shot up gold rates, reflecting the typical direct relationship between financial uncertainty and the safe-haven appeal of the metal.

"Jittery investors took shelter in the perceived safety of gold. The precious metal breached the key hurdle of $1,900/oz and skyrocketed close to its record highs in less than a month. Though we have seen heightened fluctuations, prices are now consolidating over the last few weeks, witnessing resistance around the crucial $2,000 per ounce mark. The road still does not seem to be smooth," she said.

Buyer vs seller: Here's what to do

Damani's recommendation: One can accumulate gold at Rs 45,000 or below from a medium-long term perspective (5-7 years).

"Be light on gold. A short-term allocation can be done away with at this point," he said.

Religare's Sachdeva suggests buying gold on dips ($1,900 on spot gold) with near-term support at Rs 51,000/10 gms, given the Akshaya Tritiya festival and the wedding season are just around the corner in India -- a period of higher physical demand. Those looking to exit gold purchased before the war or in need of cash should wait for a rise and exit in parts around near-term resistance at Rs 53,000-53,500/10 gms.

Traders can buy in the Rs 51,800-51,700 range for targets of around Rs 53,000 and then Rs 53,500 in the coming days with a stop loss at Rs 51,500, Sachdeva added.

Manoj Kumar Jain or Prithvi Finmart is of the view that gold can be an all-seasons ingredient in a portfolio. "It remains the best hedge and investment option in the times of geopolitical tensions and worsening inflation around the globe," he told CNBCTV18.com.

At a time when Sovereign Gold Bonds are not available for investment, one can invest in gold exchange-traded funds (ETFs) through a systematic investment plan (SIP) for annual returns to the tune of 8-10 percent, said Jain, and one can hold 10-15 percent of it in the portfolio, Manoj Kumar Jain, Head-Commodity and Currency Research at Prithvi Finmart.

He believes gold always beats inflation-adjusted returns in the longer term.