Jeff Nichols, precious metals economist and Managing Director of American Precious Metals Advisors has pointed out in his latest outlook on Gold that "a small number of institutional investors and large-scale speculators trading in “paper†markets have continued to weigh gold down despite the strength of demand in “physical" markets.
NEW YORK/MUMBAI: US Gold futures fell below $1300 per ounce following a proposed plan to temporarily raise US debt ceiling after talks President Obama had with Congressional Republicans on Thursday. However, White House clarified that there was no firm conclusion reached after the talks and efforts to break the impasse would continue.
Following gains in equities and US dollar, US Gold futures and spot gold fell below $1300 and quoted at $1292.4 per ounce in electronic trading at morning hours in India.
Analysts have spread gloom on the prospects for gold and expect support at $1275-1280 levels. Mr. Kishore Narne, Associate Director Head - Commodity & Currency, Motilal Oswal Commodity Broker Pvt Ltd said, 'The prospects of gold remain bleak given that it is failing to rally inspite of the debt ceiling concerns and $1275-1280 is the major support level for gold. On the MCX, 28650-28850 is the major support area and rallies are expected to be capped at 29550-29750 levels. Metals gave up early gains yesterday and cracked during the evening session to below support levels. Trend for the short term has turned cautiously bearish and further downside from here looks possible."
Jeff Nichols, precious metals economist and Managing Director of American Precious Metals Advisors has pointed out in his latest outlook on Gold that "a small number of institutional investors and large-scale speculators trading in “paper” markets have continued to weigh gold down despite the strength of demand in “physical" markets. Stated differently, Western selling has so far trumped Asian buying.
Meanwhile, World Gold Council (WGC) said that India's gold demand could rise 15% in the last quarter of 2013 to 300 tons as a good monsoon and festival demand is expected to increase consumption of the yellow metal. This would cause gold yearly demand to rise to 1000 but some of which could be met through smuggling. Airports in the country have reported higher volumes of smuggled gold coming in to the country especially from the Gulf region following the hike in import duty to 10% effected in various stages.
According to the finance ministry, India imported 304 tonnes in April and May, two and a half times more than two month's average, after prices fell more than 10 percent, amid anticipation of further restrictions on gold.
courtesy of bullionstreet
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