Is it right time to buy more gold?

New Delhi: Along with the equity markets, a lot of action is being witnessed in the commodity space as well, especially in gold. While the glittering metal has crossed new barriers, there's no stopping it yet, say experts.

Gold has crossed the $600 per ounce barrier for the first time since 1981, but has closed at $599.70. This is said to be supported by concerns over the dollar, crude and geo-political tensions.

It is also being supported by global investment demand, ETF launch, ECB buying as well as hedge and pension fund buying and retail investor interest.

The IMF has raised 2006 global economic growth forecast to 4.9 per cent from 4.3 per cent. And the immediate range is seen within $592-612 per ounce.

Going forward, experts seem bullish on gold's prospects. While they say rising prices may act as a hurdle to physical demand, investment demand is rising.

Arvind Desai of Prabhudas Lilladher believes that gold has a lot more headroom and will rise more going forward.

It is just the begining for gold

There is much more upside in gold even now, it is just the beginning for it. It will go significantly higher from these levels. I see it going up to $610-620 levels after which it will correct for about 3-4 months. Post this I see another jump in prices. There is bullishness in gold and it will perform better. On a longer-term, I even see gold going up to $1,500 level. But immediately we will see a rally after which prices will remain steady or move lower.

Rise in price will not impact demand

Even though prices are rising, people will continue to buy since the economy is booming and there is also more disposable income now. There will be no fall in sales since now we see more funds putting money into gold with an investment perspective.

Technical analyst, Sudarshan Sukhani is also of the view that the bull run in gold has just begun.

Target for gold at Rs 9300-9400 levels

Gold has just crossed USD600 level yesterday night, that is the benchmark for it. It has not done that for the last twenty-five years. It is just the beginning a bull market in gold. So if we take it in rupees it will go upto around Rs 9,300-9,400, and then the initial target will be reached. That is the point where profit taking could come in. .

Rajini Pandicker of MAN Financial believes that at present gold might correct to $574 level.

Investment demand will surely rise for gold

Though gold prices have gone overboard, they are breaking all barriers due to various geo-political concerns. We see it correcting to $574 level, that is the immediate downside. However, gold is seeing a surge due to a lot of fund buying and diversification. We see gold gaining due to the interest rate scenario, and positive co-relation of the euro, which will be gaining. While the physical demand may go down for gold, the investment demand will surely rise. In the Indian markets we see gold hitting a resistance around the Rs 8,700-8,730 levels.

So, probably this is the time to get your hands on the metal that just got more precious.