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According to local experts, the Indian stock markets in a downward direction, and will continue to decline, with foreign investors fleeing from emerging market equities and currencies. The stock markets and currencies in many emerging countries under the pressure of strong sales for weeks and the prospects for the global economy has been getting bleaker. The price of gold may continue to drop as well - although, according to analysts, the yellow metal the best performance of other assets.
On Thursday morning the gold price dropped 3.8% to 28,300 rupees per 10 grams. According to the Indian analyst Sudarshan Sukhani in the following weeks the gold price will drop as low as 24,000 rupees per 10 grams. The prices at the Indian precious metal markets follow the price developments at the global markets – primarily the New York Comex and the London Bullion Market.
This week the Indian gold price dropped 8%. Nevertheless, while foreign investors continue to withdraw their capital from Indian markets, this could well mean more Indians fleeing to safe havens such as gold and silver. The urge for debt reduction in the financial sector and the demand for dollars from the banking sector were the main reasons why prices dropped in the paper gold markets. Meanwhile, the situation at the physical gold markets is completely different. Indian dealers have said that even after the end of the Indian festival season, investor demand for physical precious metals continues to be very high.
Meanwhile, Ashwani Gujral, main strategist at ashwanigujral.com, expressed his optimism about the long term developments in the gold sector. Unlike fiat currencies, gold cannot be printed or generated electronically by just pressing a button. In the face of a new economic recession, investors at the financial markets are looking for protection in US Treasuries and the US dollar. But there are signs that governments and central banks around the globe will try to solve the immense economic problems by restarting the printing press. This will again pile pressure onto the US dollar and other important currencies.
Gujral expects that after consolidation, the precious metals sector will be ready for a new leap. Gold, silver and other precious metals are – among other tangible assets – the only assets that offer protection against the devaluation of paper currencies. Should the global gold price drop another $100, Gujral's company will take advantage of this situation to stock up its gold reserves.
However, Ashish Shah, analyst at Sushil Global Commodities, advises investors to withdraw from the gold market. According to Shah, technical indicators were suggesting that the gold price would hit new lows. Investors should take advantage of the short-lived price appreciation in the gold price to sell. Shah did not specify as to when he recommended reentering the gold market.
Sumeet Bagadia, head of commodities, currencies, commodities research at Destimoney, optimistic about the base and non-ferrous metals sector. In recent days have reached attractive prices to levels enough to restore under this sector. In particular, zinc, and it seems excessively from a technical perspective
According to local experts, the Indian stock markets in a downward direction, and will continue to decline, with foreign investors fleeing from emerging market equities and currencies. The stock markets and currencies in many emerging countries under the pressure of strong sales for weeks and the prospects for the global economy has been getting bleaker. The price of gold may continue to drop as well - although, according to analysts, the yellow metal the best performance of other assets.
On Thursday morning the gold price dropped 3.8% to 28,300 rupees per 10 grams. According to the Indian analyst Sudarshan Sukhani in the following weeks the gold price will drop as low as 24,000 rupees per 10 grams. The prices at the Indian precious metal markets follow the price developments at the global markets – primarily the New York Comex and the London Bullion Market.
This week the Indian gold price dropped 8%. Nevertheless, while foreign investors continue to withdraw their capital from Indian markets, this could well mean more Indians fleeing to safe havens such as gold and silver. The urge for debt reduction in the financial sector and the demand for dollars from the banking sector were the main reasons why prices dropped in the paper gold markets. Meanwhile, the situation at the physical gold markets is completely different. Indian dealers have said that even after the end of the Indian festival season, investor demand for physical precious metals continues to be very high.
Meanwhile, Ashwani Gujral, main strategist at ashwanigujral.com, expressed his optimism about the long term developments in the gold sector. Unlike fiat currencies, gold cannot be printed or generated electronically by just pressing a button. In the face of a new economic recession, investors at the financial markets are looking for protection in US Treasuries and the US dollar. But there are signs that governments and central banks around the globe will try to solve the immense economic problems by restarting the printing press. This will again pile pressure onto the US dollar and other important currencies.
Gujral expects that after consolidation, the precious metals sector will be ready for a new leap. Gold, silver and other precious metals are – among other tangible assets – the only assets that offer protection against the devaluation of paper currencies. Should the global gold price drop another $100, Gujral's company will take advantage of this situation to stock up its gold reserves.
However, Ashish Shah, analyst at Sushil Global Commodities, advises investors to withdraw from the gold market. According to Shah, technical indicators were suggesting that the gold price would hit new lows. Investors should take advantage of the short-lived price appreciation in the gold price to sell. Shah did not specify as to when he recommended reentering the gold market.
Sumeet Bagadia, head of commodities, currencies, commodities research at Destimoney, optimistic about the base and non-ferrous metals sector. In recent days have reached attractive prices to levels enough to restore under this sector. In particular, zinc, and it seems excessively from a technical perspective
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