Gold

Gold has been in a bearish trend for the last 5 years. What are future price predictions?

gold

Gold has been in a bearish trend for the last 5 years. What are future price predictions?

NEGATIVES

With improvement in U.S. economy over a period of time fed has been considering of increasing interest rates. Now when the economy is performing well why keep a low interest investment?

Gold is considered to be an asset class investment .With increase in interest rates why keep an investment in low yield?

If we consider the consumption pattern of gold than INDIA has been the biggest consumer of gold in terms of tonnage if we exclude the financial year 2013-14.The purchase of gold in terms of tonnage has shown a decrease in terms of tonnage.

POSITIVES

Improvement in U.S. economy may be considered as fragile as other major economies of the world are facing a down trend. The global slowdown can ultimately effect the growth and can slowdown the economy which can force the FED to hold interest rates.

Geo political tensions are good news for gold bulls. Middle East and some parts of Africa has been in a prolonged battle with extremists creating an atmosphere of uncertainty.

INDIA has witnessed a major regime change. With increased vigilance on black money which was a major consumer of purchase of gold as the taxation system allowed certain liberties the increase in purchase can be related to the performance of the agri based economy of the country. A monsoon prediction has been good and could spur investment and purchases in the near term. Import duty on gold in INDIA has been high to control $ outgo .The rates of import duty of gold could reduce with control in fiscal deficit and dollar infusion into the country.

Brexit has completely changed the demand for the yellow metal and considered very positive for gold bulls.

NEUTRAL

With Fed interest rate coming up will gold be able to hold prices?

CHINA remains a major consumer of GOLD but with the cooling of their economy will they be the biggest consumer of gold?

The YEAR 2016 holds a neutral view on gold with a positive bias.

About the author

smartmetaltrader

7 Comments

Click here to post a comment

  • After looking over a few of the blog posts on your
    blog, I honestly like your way of blogging. I bookmarked it
    to my bookmark webpage list and will be checking back soon. Please check
    out my web site as well and tell me how you feel.

  • I don’t even know how I ended up here, but I thought this post was great. I do not know who you are but definitely you are going to a famous blogger if you aren’t already 😉 Cheers!

  • Hello Web Admin, I noticed that your On-Page SEO is is missing a few factors, for one you do not use all three H tags in your post, also I notice that you are not using bold or italics properly in your SEO optimization. On-Page SEO means more now than ever since the new Google update: Panda. No longer are backlinks and simply pinging or sending out a RSS feed the key to getting Google PageRank or Alexa Rankings, You now NEED On-Page SEO. So what is good On-Page SEO?First your keyword must appear in the title.Then it must appear in the URL.You have to optimize your keyword and make sure that it has a nice keyword density of 3-5% in your article with relevant LSI (Latent Semantic Indexing). Then you should spread all H1,H2,H3 tags in your article.Your Keyword should appear in your first paragraph and in the last sentence of the page. You should have relevant usage of Bold and italics of your keyword.There should be one internal link to a page on your blog and you should have one image with an alt tag that has your keyword….wait there’s even more Now what if i told you there was a simple WordPress plugin that does all the On-Page SEO, and automatically for you? That’s right AUTOMATICALLY, just watch this 4minute video for more information at. Seo Plugin

  • Howdy very nice web site!! Man .. Excellent .. Wonderful .. I will bookmark your blog and take the feeds alsoKI’m happy to search out a lot of useful info here within the put up, we need work out extra techniques in this regard, thank you for sharing. . . . . .