Gold futures are likely to recover from their 13-week low this quarter and extend their rise further to breach 21,000 rupees by the end of the third quarter, analysts and importers said. On Thrusday evening, gold for February delivery was trading 0.33 percent lower at 19,613 rupees per 10 grams, after hitting a low of 19,515 rupees, a level last seen in early November. "Prices have fallen a bit from their record high. Investors and traders would encash every opportunity and this would inturn help prices," said a bank official, which imports gold.
Prices are still down 6.3 percent from the record high of 20,924 rupees, struck on Dec. 7. Analysts said there could be correction in the early part of the year and may recover at the end of the quarter on inflationary concerns, and a weaker dollar, which makes the alternative asset attractive.
"In the short term, there is a fair chance of a corrective fall in prices, but we remain bullish towards the end of the first quarter of 2011," said Ritesh Gandhi, research analyst with AnandRathi Commodities, which expects prices to rise to 20,975 rupees by end of March quarter.
A median of the poll conducted by Reuters of 15 participants, which included 5 bullion importing banks and 10 brokers, was at 20,600 rupees.
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