Gold price is presently under a consolidation phase and likely to stay range bound for some time before it commences its next leg of rally. Gold is likely to stay range bound at 850-950 dollar an ounce. This is likely to stay for the next one to six months before it begins the next leg of rally, Joe Foster Portfolio Manager Van Eck Gold Funds from one of the US-based oldest gold managers said.

"By the end of the year, gold is likely to touch 1030 dollar an ounce," he told PTI on the sidelines of launch of AIG World Gold Fund, an open-ended fund scheme by AIG Investments.

Foster said the bull run for gold price would continue for the next four to five years.

Speaking about the fund proposes to invest in companies engaged in the extracting, processing and marketing of gold through an international fund being managed by Van Eck.

When asked for the rationale behind the timing for investment in gold as an asset class, Foster said with recession in US, gold is seen as a hedging tool.

The new fund offer will be open for purchase from April 15 to May 14 and will reopen for ongoing purchase and redemption by June 12.

AIG declined to give any target to mop from World Gold Fund. AIG Investments AUM in India is Rs 3,200 crore.

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