Risky ride

Gold bull runs were followed by sharp price corrections

The current bull run has been the longest in terms of time frame and returns during the last five decades. The bull run, now in the consolidation phase, started in 2001. However, the interesting thing about gold price movement is that after a steep rise in prices, bear runs have also been equally sharp, and in the previous five cycles, prices have fallen 40-50 per cent from the top.

Rupee fall has protected gold prices in India, albeit only up to a limit

While the gold price cycles are observed in the international markets, prices in India, at least in the past, have followed the broader trend. However, price falls were limited to the extent of depreciation in the Indian currency against US dollar. (Cilck on graphics)