Analysts and money managers say demand for the bonds will remain strong despite the latest issue being the most expensive among all the five tranches announced so far. The issue price of Rs 3,150 per gram is higher than the Rs 3,119 per gram for the fourth tranche issued in July. "The outlook for gold continues to be bullish in the medium term as interest rates are still low in a majority of the countries. Gold bonds issued in November and trading on the National Stock Exchange (NSE) ended at Rs 3,203 on Friday, which is higher than the Rs 3,150 per gram issue price of the fifth tranche. I expect gold to give 15% to 20% returns per annum for the next two to three years," Narne from Motilal Oswal said.

Source: Economic Times September 05, 2016 03:11 UTC