Gold has been softer with the Dow ending the week on a higher than 'down in the dumps' feeling. However , this author feels that gold is bound to increase over the immediate coming weeks.
Reasons:
With Diwali, the Hindu festival this week, there could be demand from the gold hungry Indians. Indians are likely to keep the stock market high today with the reforms in petroleum prices and the election results but these may have already been factored in by the markets. As such any rise in stocks may be a time to sell (for an in and out trader)and park elsewhere.
There was nothing major that happened for stalled Europe... the world economies remain as worried as they were and wait patiently for the European (read German) mechanic, who as usual is taking time to come...
Investors left yen assets and Japanese companies rose as every fall in the currency is good for an export driven corporation like Toyota. The likelihood of Pension funds buying domestic shares has helped. However, deployment elsewhere would be affected. So net- net, demand remains the same.
Chinese growth is slowing and so the Central bank there might infuse in more money. Both are good for gold.
jaynayar@gmail.com
Reasons:
With Diwali, the Hindu festival this week, there could be demand from the gold hungry Indians. Indians are likely to keep the stock market high today with the reforms in petroleum prices and the election results but these may have already been factored in by the markets. As such any rise in stocks may be a time to sell (for an in and out trader)and park elsewhere.
There was nothing major that happened for stalled Europe... the world economies remain as worried as they were and wait patiently for the European (read German) mechanic, who as usual is taking time to come...
Investors left yen assets and Japanese companies rose as every fall in the currency is good for an export driven corporation like Toyota. The likelihood of Pension funds buying domestic shares has helped. However, deployment elsewhere would be affected. So net- net, demand remains the same.
Chinese growth is slowing and so the Central bank there might infuse in more money. Both are good for gold.
jaynayar@gmail.com
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