Gold prices expected to rise

<p>The price of gold could rise soon.</p>

The value of gold is set to have a resurgence in the coming weeks and months, it is claimed.

According to a report by The Week, a move by the Reserve Bank of India to make it mandatory to export 20 per cent of imports is going to boost the price of the precious metal.

Traders and jewellers both stated that they expect the impact of the decision to send the value of gold rising.

Bombay Bullion Association ex-president Suresh Hundia said: "The exporter will be under pressure to export at any given price. If there is any export loss, the exporter will try to recover it from domestic sales."

The value of gold has been dropping for much of the year, but has seen a resurgence of late as investors turn back to the precious metal as a safe haven.

Michael Cuggino, who manages a multi-million-dollar portfolio of assets at Permanent Portfolio Family of Funds, recently told Bloomberg that support for the commodity is growing among investors.

Find out about commodities trading and learn CFD strategies at City Index

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.