Gold prices are likely surge to a level of $970 an ounce this week in international markets on softening dollar but analysts said the domestic rates are unlikely to track the global cues, thanks to a stronger rupee.
The forecast surely would bring cheer to retail buyers ahead of the commencement of marriage and festival seasons but those wishing to redeem their gold investments would have to wait longer.
Gold prices were ruling above the 15,000-level in bullion markets which experts say psychologically deterring for buyers. The MCX spot prices, however is shade lower Rs 14,885.
In the futures, MCX August contract was at Rs 14,900 per 10 grams and.
"The precious metal remains bullish in the international markets as dollar is under pressure and it may reach $970 an ounce (28.34 grams). However, domestic prices are likely to be stable with an upward bias with rupee appreciating," brokerage firm SMC Global's Rajesh Jain told PTI.
Global prices usually sets the tone for domestic prices, but rupee gaining strength may change the rules of the game this week.
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An appreciating rupee may lead to waning demand for the metal, taking some shine off gold.
The rupee closed at 47.90/91 against the dollar on Friday last week.