Gold prices are expected to be higher in the next year for a number of reasons. The median estimate is that the average price of gold in the coming year would be around $1500/oz. This is nearly 8% higher than the median estimate at the beginning of 2019. Here is why gold looks set to go higher.

· Most investment portfolios are under invested in gold. An increase in gold investment demand will mean that ETFs will have to buy more gold to back up their units and that will create demand for more gold.

· Central banks are also likely to load on more of gold into their balance sheets. For example, central banks across Asia and Europe have been seriously stacking up on gold and creating gold demand.

· Gold is also likely to be a good safe haven asset in the coming year. The outcome of BREXIT and the trade war is still uncertain and that is likely to create safe haven demand for gold.

· Equities are at an all time high in most markets. Gold demand used to be muted when equity had room to go higher. But at current levels, the risk in gold is just low and equity is too high. That could also drive gold demand.

· Lastly, many large investors and fund managers are buying gold as an alternate currency as other currencies are losing value due to too much of liquidity.

Overall the demand for gold is expected to buoyant in the coming year and prices could be upwards of $1500/oz. Of course, the Indian price will be a function of dollar price and the rupee/dollar movements.