Given the uncertainties in the global financial sector, the gloomy outlook for the US economy and the disruption in gold mining in South Africa, market gurus have begun saying that gold is ready for a ‘rocket shot’ past the $1,000 and ounce mark.

Indeed, the uncertainties are bothering Asian stock markets too. The Bombay Stock Exchange (BSE) sensitive index or Sensex dropped sickeningly this morning, only to wobble back to make up half the drop by late trading. Whichever way it goes, the erratic graph being plotted by the Sensex – as other indices all around the world – is all that is needed to guarantee gold its rocket shot.

But don’t rush off and buy gold yet. Energy gurus are betting that oil will now slide down to around the $80 a barrel mark given that economic activity and therefore, demand for energy in the US will ease off pretty soon. Oil and gold have a direct correlation. Lower energy prices usually mean lower gold prices.

Lower gold prices are good news for the Indian jewellery industry, which is still driven by ‘traditional’ jewellery for weddings and socio-religious occasions that is gold-intensive and sought after for its intrinsic value as much as anything else. High gold prices see demand for this sort of jewellery dropping off while demand for investment bars and medallions shoots up. Lower gold prices see more jewellery being bought.

But there aren’t any market gurus willing to declare that any prediction they make is sure shot. Tomorrow could be a very different day. The future is as uncertain as it has been in the recent past.