“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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