Will 2016 see a revival in the price of gold?
It is after a very long time that the price of gold has seen a consistent rise for 9 successive trading sessions. After touching a low of $1050/oz and threatening to fall below the $1000 mark, gold registered smart gains to cross and settle above the $1100 mark. Is this a sustainable rally in gold prices, or is it just another false rally like the many cases we saw post 2011? Continue reading “Year of Gold”
by- Sugandha Sachdeva | AVP & Incharge- Metals, Energy & Currency Research at Religare Securities Limited
With gold prices slipping to new five year lows, the sentiments have once again turned quite bearish. After respecting the psychological level of Rs.25000/10gms at domestic bourses for a long time, prices have eventually breached the same, reflecting the lack of demand for the precious metal and unwinding of safe haven bets. In international markets too, the prices have plunged sharply and are trading below $1100 per ounce, significantly down from the all-time highs of $1920 per ounce. The universal safe haven asset has also failed to attract investors during the recent turmoil emerging out of Greece debt talks and the jitters in Chinese equity markets. So does that infer that prices may head further lower since the investors look in no hurry to take advantage of the lower prices? Well, the fundamentals are indicating something that’s not divergent from this thought ! Continue reading “Gold : How low can it go ?”