LTCG on sale of gold recd. on redumption of GOLD BOND 1998

Taxable

Yes

1. Gold bonds are not capital assets and hence redemption of Bonds will not attract Capital gains. However, that is with respect to past years. 
2. During the FY 2018-19, if the Gold(Physical)  is sold, the same will be subject to capital gains. Since the Gold was held for more than 3 years it will be considered as Long term capital assets and it will be subject to LTCG @ 20.6% with indexation benefits. 
3. Considering the changes in indexation table, unlike problem in arriving at FMV of Immovable property as on 2001, with respect to Gold it should not be difficult. FMV of gold as per the rate chat of gold as on 2001 will do. 
Please correct me if the above solution has an alternative view. 

Tax for reply. My view is also the same. It is taxable in a.y. 2019-20 as LTCG with indexation.