New Delhi, Jan. 30 -- Gold prices are skyrocketing. Over the last year, the gold rate in India has soared by over Rs.93,000, or about 115%, per 10 grams. In January so far (till the 29th), it has jumped by over Rs.42,000, or more than 32%, per 10 grams.

While geopolitical uncertainties, the dollar's weakness, US Fed rate cuts, aggressive central bank buying, and strong retail demand have driven the precious metal to unprecedented levels, the sharp gains have raised the question of whether the yellow metal has entered bubble territory.

Some experts say the metal may be ripe for profit booking at this juncture.

Their assumption is based on the historical fact that assets that move far above their long-term trend see some profit-taking or...