Gold reclaiming safe haven status, but high prices may dent demand in India

In India, the worsening current account deficit has raised fears of an increase in import duty of gold

In the last four months, gold prices found support between $1,170-1,180 three times, indicating that the market will not allow the yellow metal to go down further. In the last two days, gold prices rebounded two per cent in the international market and observers see volumes peaking up in the yellow metal in Comex, which reflects safe haven buying.   

Gold prices have recovered in the last two days by two per cent and the yellow metal is trading above $1,200, while in India, the price for standard gold is around Rs 31,000 again, showing a sharp recovery in the