Gold rates across the world and in India more specifically could witness a major crash if a recent analysis is to be believed.
An analyst has forecast that Gold price could correct to levels of $1,600 per ounce.
Gold at $1,600 per ounce corresponds to approximately Rs 42,000 at prevailing forex of 1 USD equal to Rs 74.21.
Dominic Schnider the head for commodities investment at UBS Global Wealth Management in a report warned "if you have a tactical position (on Gold), get out; if you have a strategic position, hedge it..."
Schnider and UBS analysis also forecasts a price of $22 per ounce for Silver. The prevailing spot price hovers around $22.59. Analysts favoured Platinum owing to its industrial application.
UBS analysts attribute the market need as a factor for their analysis. "In a world that looks better, why would you want to hold so much insurance asset, and that simply means the market needs to balance at the lower level," say analysts.
Last week two experts that Sify Gold spoke to forecast a similar opinion stating that Gold may have extinguished all triggers to reach a high.
Also Read: Latest Gold Rates across India and Gulf