Gold has had a good run so far, with the rise in oil prices gold is being used as a hedge against inflation rise , dollar being weak gold is more desirable than stocks and shares and offcourse the Asian countries demand more during the festive season especially India, world's biggest bullion buyer , where many jewellers have bought gold at the end of the festive year.
But a report by some speculators and traders shows that gold prices may fall because gold is being sold now after the prices touched $600 an ounce. That is the resistance level in the charts where everyone is selling at the clustered point. Gold has followed oil very closely , but it is unusual to see that now when oil is going down, gold still seems to be rising , because investors and speculators are buying gold now due to weakening of the US dollar.
I feel that if oil remians in the range of $57 - $60 a barrel , gold will not be touched by oil's changing prices. But I feel that Gold is trading over the resisitance level now so it is also possible that it will trade higher around $602- $603 an ounce , though a little lower than yesterday's close of $604.1 an ounce.
No comments:
Post a Comment