2 January 2014

Commodity trends in 2014

“Buying precious metals at this stage requires a great deal of stamina and patience as a mountain of fundamental drivers is blocking a potential path to recovery”.
Gold and silver prices hampered by rising growth expectations, but supported by physical buying. Physical buying of gold has remained strong, but not enough to offset negative investor sentiment as tactical investors have sold aggressively as the US dollar and real interest rates have increased. As long as the US dollar continues to firm and real interest rates rise the gold price will likely remain under pressure. However, we believe that a strong physical demand reaction to lower prices similar to that seen in the first half of 2013, together with falling gold production and lower supply from gold recycling will help to limit price downside.
Although prices are expected to find some support in 2014,we are expecting to see a “V-shaped” recovery in prices; instead, we are expecting the next year to be a period of consolidation and a return of volatility.

Intraday call For Gold Today
Buy Gold Jan @ Rs. 28600 target Rs. 28800 stoploss Rs. 28400

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