Bullish on Gold for the coming week.

Gold is likely to gain in the coming week unless coordinated central bank action is forthcoming. Several strands on the international economic arena together are likely to have a benign impact on gold.

ü  The International Monetary Fund last week cut the 2014 global growth forecast to 3.3 percent from 3.4 percent. This will add to investor anxiety and seek a safe haven in the precious metal.

ü  The European Central Bank must hope to take the euro down so that European competitiveness is not so affected. With the impending deceleration of Germany, Europe's powerhouse, Europe looks wobblier.

ü  Historically, Germans have not been keen on government spending and hence attempts to stimulate Europe may meet German resistance.  Germans will delay or stall Draghi's desires to expand ECB's balance sheet.

ü  Given that the strengthening of dollar will impact adversely on American competitiveness,  and given that the Chinese are in no mood to listen to let the Chinese yuan  be decided by market forces (despite the Chinese proud claims that the yuan is being used as reserve  currency at least by some central banks) Americans may like a weaker dollar.

ü  On the pretext that a drop in US stimulus program me would slow down global growth, America will keep its expansion options open. (One of the commendable things is that the Fed is rather transparent with its policy implementation timetables.) 

ü  The German idea of  shift away from government spending to private and public investment is not a short run solution. Given its relative non acceptance of migrants Germany's costing is unlikely to attract private investment.

ü  Given that German exports are inversely related to euro, and given their historic intransigence ECB seems a powerless creature,  USA is a better destination for digital technology.

ü  With the Chinese economy still slow and with no great structural reforms on the anvil for India, investors may like to choose a safe heaven.

ü  The safe haven currency of Swiss Franc is affected by Switzerland's zero rate policy  and possible disinflation.