Traders see gold price regaining $2,000/oz level on speculative interest

Gold has gained over $150 in first two months of FY22, yielding 9% returns; Bitcoin rally could reverse flow into the metal

Gold investors expect the metal’s price to regain the $2,000 per ounce level, touched last July, as sentiment is bullish and speculative interest and technicals favour a continuation of the rally.

Gold has rallied over $150 in the first two months of financial year 2021-22 (FY22), providing returns of 9 per cent. This rise is a reflection of the negative real bond yield caused by rising consumer price inflation in the US. Gold is viewed as an inflation hedge and a safe haven asset that can be bought against a falling dollar.

Nigam Arora, a US-based expert and author of