Gold will see further growth ahead, says economist as RBI repo rate remains unchanged

Gold has now reached its 52-week high and will see further growth ahead, said Peter Cardillo, Chief Market Economist at Spartan Capital Securities, on Thursday. The statement came after the Reserve Bank of India (RBI) Governor Shaktikanta Das announced that the repo rate will remain unchanged at 6.5 percent.

Peter Cardillo, Chief Market Economist at Spartan Capital Securities, said, "We are seeing gold has reached a new 52-week high this year and we are probably going to see further gains ahead. My short-term target is around $2,075 per ounce, perhaps then a pullback and we are on our way close to $2,200-2,400 per ounce."

Globally, gold prices slipped from one-year highs on Thursday as the dollar regained some ground. On MCX, domestic gold prices stood at Rs 60,718 per 10 grams. This was Rs 138 (or 0.23 percent) down from the last close.

On April 5, gold prices were trading near all-time highs after touching fresh peaks on Tuesday. The yellow metal was trading at around Rs 61,130 per 10 grams on Wednesday.

Gold prices slumped as the dollar index rose 0.2 percent, making bullion expensive for overseas buyers. At around 12:15 pm, the US Dollar Index Futures was reeling at 101.660 - up by 0.1 percent.

Cardillo's statement came as markets see a 53.8 percent chance of the Fed standing pat on interest rates in May, according to CME's FedWatch tool.