Finding the right hotel just got a whole lot easier - hotelscombined.com

Saturday, May 11, 2013

Why buying gold this Akshaya Tritiya isn't advised

Indians are usually looking for an excuse to satisfy their hunger for the yellow metal and the upcoming auspicious occasion of Akshaya Tritiya is likely to provide just that. Akshaya Tritiya is the second biggest festival after Dhanteras for buying gold. With gold prices showing signs of easing after a long time, buying gold on Akshaya Tritiya seems just natural. Right? Think again.

Experts who track the movement of the precious metal believe the recent crash seen in gold price may not be a temporary blip , and that it could remain subdued for a while.

Praveen Singh, senior analyst - commodities at Sharekhan says barring traditional significance, it probably doesn't make much sense to buy gold at current levels.

“The prices are already up 10% from the bottom and the US job report for April is encouraging, so from a short term perspective buying is not advised. Retail investors should wait for lower levels,” he told moneycontrol.com.

Echoing Singh’s view, Kishore Narne (Associate Director Head - Commodity & Currency), Motilal Oswal Commodities says though the size of selloff in gold was rare, one cannot call it blip as investment money or exchange-traded products (ETP) flows continue to move out of gold after the crash.

Gold holdings in ETP plunged more than 7 percent, a drop to 174 metric tons last month alone. Investors pulled out more than USD 10 billion from gold funds in the first quarter, which is the most in more than a decade. Even though the drop in prices was sudden, the rebound in prices in no way can be interpreted as a trend reversal, he elaborated.

According to Narne, seasonality does play a role in determining gold price movement, and gold prices do tend to soften after the wedding season in May and before the festive season that begins after August, but there is no technical or fundamental reason to buy gold on a particular day.

“Investors willing to play on seasonality can look to buy after such festivals. But gold buying on occasions like Akshay Tritiya has more to do with religious reasons than the timing of gold markets, and most of these purchases are long term in nature. We feel they would certainly beat the long term inflation on returns,” he said.

Oh my gold!!!

It is a well known fact that India is the largest consumer of gold. Despite steps taken by the government to discourage people from hoarding the yellow metal, the demand continues to remain high.

A recent Religare report said that central banks own about 30,000 tonne of gold of which Reserve Bank of India has about 560 tonne currently valued at about US$ 26 billion and representing 8% of our forex reserves. The US owns more than 8,000 tonne of gold.

According to Singh, market sentiment governing gold prices tend to react to various macro economic data from the US, so fall in prices is likely. But given the price conscious mentality of buyers, they don't entirely agree with the notions that there is a possibility of a severe correction in prices.

“Strong physical buying led to metal shortage in Dubai,Hong Kong. There were long queues in Japan, London, Turkey, etc. But people are price conscious and they have just witnessed a sharp fall in prices, going by their psychology, they would go slow on physical buying as prices recover,” he explained.

He expects prices to remain subdued for some time; however he says one cannot judge that the metal is in a long bearish phase yet.

On the other hand, Narne feels long term bearish phase is in place. However, the only risk to this outlook is an outbreak of a major crisis to Lehman or a sovereign default by a major Euro zone nation, which is unlikely.

Gold price below 20k again? Conditions apply!

Gold price hit the Rs 20,000 mark in February 2011, since then it has just been heading higher due to various local and global factors. A steep fall to Rs 20,000 would mean nearly 30% decline from the peak price in Indian rupee terms.

Despite the insatiable appetite for the precious metal in India, one cannot rule out the possibility of prices falling below 20,000/10 gms again, Singh said.

However, for that to happen, few factors have to fall in place. “We need to see a string of extremely good economic indicators out of the US and other major economies for at least two quarters continuously, though US numbers are crucial. Secondly, the price of metal needs to drops to $1150 and the rupee should rally to 52 level against the Dollar,” he explained.

Since US indicators are mostly soft and the data elsewhere is also not so encouraging, the chances of such a steep fall seem very dim in near-term.

Narne said, the weakness in rupee has lead to higher price in the domestic market. Unless the Indian currency appreciates significantly, gold may not see 20,000 again.

However given the trend in international prices, Rs.22000-24000 over a longer term looks possible to him.

How bright is gold’s future?

In the worst reasonable case, this year, the downside for gold price is capped at $1150 (Rs 20,000-Rs 21,500). But, before that one should watch out for crucial levels of $1330 and $1250. On the other hand, $1525 (previous solid support) and $1650 are key levels on the upside.

Narne expects gold price to further correct as the global macro environment improves. It could fall towards $1100-$1180 level in the international market and around Rs 22000-24000 in the domestic market depending on the levels of rupee, he said.

No comments:

Your Ad Here Internet marketing with a cube

Disclaimer && Declaration

This publication is not, and should not be construed to be, an offer to sell or a solicitation of an offer to buy any security. This publication, its publisher, and its editor do not purport to provide a complete analysis of any company's financial position. The publisher and editor are not, and do not purport to be, registered investment advisors. Any investment should be made only after consulting a professional investment advisor and only after reviewing the financial statements and other pertinent corporate information about the company. Investing in securities is speculative and carries a high degree of risk. Past performance does not guarantee future results. This publication is based exclusively on information generally available to the public and does not contain any material, non-public information. The information on which it is based is believed to be reliable. Nevertheless, the publisher cannot guarantee the accuracy or completeness of the information. This publication contains forward-looking statements, including statements regarding expected continual growth of the featured company and/or industry. The publisher notes that statements contained herein that look forward in time, which include everything other than historical information, involve risks and uncertainties that may affect the company's actual results of operations. Factors that could cause actual results to differ include the size and growth of the market for the company's products and services, the company's ability to fund its capital requirements in the near term and long term, pricing pressures, etcHotel Debliz Campeche
Hotel debliz campeche, great service, great rooms, great rates. Just a few minutes campeche's downtown
Granite Countertops Houston
We are the oldest and most well established granite countertop fabrication and installation company in the city of houston. Call us today to have one of our associates measure your home and give you a free quote! Driveway Repair Houston
For concrete work in the houston area, trust the expertise of houston driveway replacement. We offer commercial and residential service prepared to handle any job, any size. Call now for a free quote!
Security Dvr
We sell digital video recorders and cameras for home and commercial security. Protect your home or business with a dvr today!
Paint Contractors Houston
We are a local houston, tx paint contracting firm. We do commercial & residential painting as well as interior and exterior. We are happy to give free estimates and canLake Travis
We are the the largest mobile boat repair company servicing lake travis, texas. Call us today for all of your repair .handle any job from the smallest house to the largest commercial building.
Kitchen Remodeling Houston
We are one of the oldest and most trusted kitchen remodeling companies in houston, texas. We have over 30 years experience in the kitchen remodeling business and we have designers that are ready to impart their vast design ideas to you. Call today!
Tree Service Houston
We have been the premiere tree service in katy, tx for over 30 years. Whether you need a simple tree trimming, a 100 foot tall pine tree completely removed or a stump ground, we are the company to call in katy, texas. Call us now for a free quote!
Real Estate Katy
We are a home remodeling company located in the city of katy, texas. We perform a range of services from kitchen remodels, bathroom remodeling, interior & exterior house painting, room additions, fencing, siding, roofing and much more.
Roof Repair Katy Texas
We are a full service roofing contractor located in the small community of katy, texas. We also service much of houston, texas. We perform both commercial & residential roofing. Please contact us today for a free estimate on your roofing project!
Patio Covers Houston
We are the leading patio cover manufacturer in the houston area. We have several typed of prefabricated patio covers and we also build custom patio covers. Please call us today for a free quote!
Bathroom Remodeling Houston
We are one of houston’s top bathroom remodeling firms. We offer free estimates and perform free computerized designs of your kitchen so that you can see what it will look like before you buy. Call today for a free consultation with one of our desig
Roofing Company Houston
How to find reputable roofing companies
Drywall Repair Houston
We are the leading drywall repair company in houston, tx. We handle everything from patches to entire homes and businesses. We can match any texture and then complete the project with a custom paint job. Call us today for a free quote!
Countertops Houston
We have been the leading countertop retailer in katy, texas for over 20 years. We feature granite, marble, tile, formica and many other surfaces. Call today for a free quote!
Fence Company Houston
We are the largest residential/commercial fencing company in the houston area. We design & build all types of fencing. Our line includes wood, metal, vinyl, concrete block and more. Call us now for a free estimate on your fencing project.
Wallpaper Houston
Katy wallpaper is your source for all of your wall covering needs. We can assist you in creating a the beautiful living space that you have always dreamed of. Call today and one of our representatives would be happy to come to your home for a free
Wrought Iron Fence Houston
We are the largest fence company in the katy, texas area. We design, fabricate and install metal fencing, vinyl fencing, wood fences and many other styles. Please call us today for a free estimate on your fencing project.
Patio Covers Sugarland
Need some shade from the hot katy sun? Let katy patio covers design a custom patio cover for your home. Whether it is just a low end shed roofed cover or a full patio enclosure, katy patio covers has got you covered. Call us today for a free estim Freeforexbroker
Forex trading information site freeforex-broker. Com provides info about foreign exchange currency trading. Learn about forex market, download free forex e-books, forex articles and use free forex tools.
Moveis De Escritorio
Furniture for industria, commerce, home and computer science: pertaining to school steel tables, chairs, cabinets, fans, water throughs, furniture, wallets, closets, safe etc
Affordable Link Directory Submission Services
Complete seo package and modular seo services like manual directory submission at affordable price
Flash Template
On flash-template. Com you can find flash templates and website templates that are easy to customize and can be used for either personal or business websites. Insurance Forum
We are a discussion forum dedicated to the exchange of information between policyholders and insurance claims professionals to promote the swift and thorough conclusion of property damage insurance claims. Roofers Conroe Tx
Do you need a new roof? We have been serving the lake conroe area for over 20 years! Call us today for a free quote on your roofing project. Wholesale Perfume
Wholesale perfume, both men's and women's fragrances. Benefits Care
Are you looking for affordable health care insurance? Our service helps you find the right insurance plan to fit your needs. We offer a wide variety of benefits from ppo's and hmo's to hsa's and maternity plans. Let us save you money today. Motorsport Experience
Global racing schools is the authorized sales agents for over 300 schools globally and we offer over 400 airlines, 80,000 hotels and private jets and helicopters to make motorsport your travel experience complete! No bias, no fees. Pregnancy Insurance Plans
Pregnancy insurance plans helps pregnant or soon to be pregnant woman find the right pregnancy insurance to fit their needs. Sold Quick.ca - Featuring: Half.com, Amazon, Buy.com, And More
Don't be sold quick; find the best price for your purchase from a number of vender's that offer the same item for sale. Major venders: buy. Com, amazon, musicimport. Biz, unbeatablesale. Com, shopperschoice. Com, onsale. Com, shoebuy. Com Pearland Roofng
We are the top roofing contractor in pearland, tx. We also serve all of south houston & galveston, texas. Residential/commercial. Call now! Parallel Import Cars
Pro import motor is the leading parallel import car specialist in singapore. We specialize in all imported cars. Luxury and cng cars available. United Benefits Group Of America
Are you looking for affordable health or life insurance? United benefit group of america is a leader in the insurance field. We specialize in connecting consumers with top insurance companies to meet and exceed all their health and life needs. Promotional Items
The super store for promotional items and promotional products. Over 950 000 custom promotional products and business promotional items for trade show giveaways, corporate gifts, school promotions and business advertising. Sentosa Resort
Singapore's leading eco friendly resort. Equipped with singapore's longest swimming pool at 95m using only fresh underground spring water. Spring Texas
Get a free roof quote on your commercial or residential project today! We have been roofing spring, texas for over 20 years! Galveston Roofing
We were voted into the top 5 roofers in all of galveston county 3 years in a row! We perform both commercial & residential roofing. Call us today for a free estimate! Roofing Houston Tx
We are a top roofing contractor in houston, texas. We do both commercial and residential work. Due to hurricane ike we are also performing temporary emergency roof repairs and roof tarping throughout the houston area. Call today for a free quote! Webgazing Search Engine
Tired of searching google, yahoo, and msn. Search the web in an all new way with our family friendly search engine. We list over 200,000 sites with free, premium, and ppc listings available. Online Texas Hold Em Poker Strategy Strategies Tips And Lessons
King cobra poker: the ultimate in free winning online texas hold em card poker strategy free poker tips poker lessons and winning poker instruction and instructions. A huge collection of advanced material on texas holdem from an online poker expert.Stroke Treatment
Neuroaid is a new stroke medication that shortens patients' normally long recovery after strokeVietnam Travel
Travel vietnam, vietnam tour, vietnam travel, vietnam tours, tour vietnam, vietnam travel agency, travel indochina, indochina travelNatural Birthing Alternatives
Giving birth naturally is great, it's wow, it's elating and delightful! Are you one of those interested to know about safe natural alternative ways to give birth - without medical interventions and the usual administration of medications anesthesiaViceroy Jets - Private Jets. Anytime (24/7). Anywhere. Worldwide!!
Viceroy jets is known worldwide as one of the best in private jet and executive charter services. Flexibility is our key. No contracts, no acquisition costs, no membership feesAdsens| Ad Sense | Adsense Ready| Adsense SecretsReal Estate Link Exchange Directory
Free link exchange and link building service for real estate themed websites. Injury Law Central
El dabe law firm 330 w 11th st. #701, los angeles, ca 90015 714-536-9366Nettoyage Lavage De Vitres Grand Menage Printemps Montreal
Nettoyage lavage de vitres grand menage printemps montreal , grand menage apres construction et grand menage apres renovation et grand menage apres ou avant demenagementElectronic, Computer & Medical Equipment World
Progress electronics, computers and medical equipment must be achieved by all the people of indonesia and the world. Therefore this website is dedicated to provide information related to it.Gucci Outlet
Buy fashion style gucci bags. The newest style and best service you can get! Welcome gucci outlet online store.Nike Outlet
Nike outlet store supply nike shox, nike dunk sb, nike air max, nike air force shoes, nike basketball shoes, with excellent qulity and lowest price.Toms Outlet
Toms outlet,toms outlet online,toms outlet store online,toms factory,toms shoes Video Hosting - Website Hosting Starting At $3.25/month!
Video hosting is optimized for video oriented content. Other solutions include reseller hosting, vps hosting, dedicated hosting, email autoresponder marketing, ecommerce website hosting, ssl certificates, rich content service, and much more!North Face Sale
North face sale are very stylish and they keep pace with the fashion world. The north face jackets becomes a fashion statement for many during the winters.Filme Online, Filme Hd Online, Filme Hd, Hd Film, Filme 2013, Filme Online 2013 , Filme Online 2012
Filme hd online gratuite, filme premiate, hd film, filme 2013 online, filme hd online gratuite, filme noi hd, filme 2012, seriale online gratuite, trailere filme, filme onlineOnline Shopping
Discount online shopping with the worlds most popular shopping malls, boutiques, shops, warehouses, dropshipping and outlets, it is all about good shoppingFemme De Menage Entretien Menager Montreal, Laval, Rive Nord
Entretien menager menage-genial™ service de nettoyage femme de menage recherche?Glass Pipe And Bongs Water Bongs Bubbler Glass Pipes
Welcome to oneoffsmokeglass. Com we have all your glass pipe and water pipes needs at a great price!Glass Pipe And Bongs Water Bongs Bubbler Glass Pipes
Welcome to oneoffsmokeglass. Com we have all your glass pipe and water pipes needs at a great price!Womens Fashion Dresses Teenager Dresses Teenager Clothing Tops
We have in our collection, very stunning and affordable womens dresses & tops from around the world. We have teenager dresses and our women's fashion clothing represents our "trendiest" looks on the market. They are all available at competitive priceMichael Kors Australia
Welcome to cheap michael kors australia sale online shopping, we sell the latest discount michael kors outlet. Http://www. Pony-go-round. Com/videos/Service Menager A Domicile Menage-poly- Grand Menage
Entretien menager menage-poly� , service de nettoyage - femme de menage recherch�? Confiez nous la corvee de votre menage. MissionCar Rental Costa Rica
4x4rentacar. Com offers four wheel drive vehicle rental - affordable self driving transportation and custom travel tours company for holidays or vacations in costa rica all inclusive rates starting at $39 per day

Disclaimer

Disclaimer : All information given here is for information purpose only. Users are advised to rely on their own judgement or investment advisor when making investment decisions. This blog is not liable and take no responsibility for any loss or profit arising out of such decisions being made by anyone acting on such advice.