Gold prices 'will rally'

Commodity experts have expressed faith in gold prices for the coming months amid turbulent economic conditions.

The declining dollar against the euro, as well as climbing crude oil prices, could conspire to push gold prices up, suggesting that now may be a good time to consider gold investment.

Alex Matthew, metal analyst at Geojit Commodities, said that he is optimistic about the future for the precious metal.

"Fundamentals look very prosperous for gold. The immediate resistance level would come in at $929 an ounce and will move towards $940 an ounce," he told JCK India.

Mr Matthew added that gold prices may continue to consolidate in the near future, but are unlikely to drop considerably.

HSBC has raised its forecast for gold prices to $915 an ounce due to decreasing confidence in the US and world economy.

Earlier this month, it was reported that escalating violence in South Africa could reduce gold output. This could support gold prices as demand is still high, particularly from Russia and China.

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