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VOLATILE SHEEN OF GOLD



The time is fast approaching of which the investor’s wait and there are ample of reasons behind the cause and as it would be wise to postpone the dual purpose of the investment or the purchase of the gold and jewellery.

The slide may continue in the year 2016 which could be 20K per 10 grams or else rebound to 30K per 10 grams. If we take a look after the slump of 2008 and up till the year 2014 the banks have invested in gold because of uncertainties but now the conditions are different and the gold may touch the levels of 2009 also.

The deciding factors could be the ratings by the US Fed and the other international factors governing the prices of the gold. The growing level of uncertainties also directly affects the gold and the increases the price of the gold because the banks all over the world amass the gold during these times of growing uncertainties.

On the other hand if the US Fed decides to postpone the increase the rates and Japanese as well as the European countries do not do not revamp their monetary policies than the prices of the gold could touch the 30, 000 levels which is unlikely at the moment.

In the next one year the exchange rates of rupees to dollar will hit the tank due to combo reason that the Indian economy is yet to pick the pace and the US Fed is bent to increase the rates causing the dollar to strengthen. It is a matter of the pride that so far the Rs has by far so good has stood firmly against dollar despite all odds because since the start of the 2015 the Rs has registered a slide of mere 1.5% despite the fact that the reserve banks have cut the repo rates thrice and the Rupee is expected to trade at 64 levels and by the next 6 months the Rupee is expected to trade at 64.5 levels which will further go on to be at 65 Rs per dollar.


 On the other hand even the American Central Bank Federal Reserve is gradually going to wipe out the monetary incentives on the basis of the economic grounds and this has acted like a shot in the arm of the dollar. Even though the Rupee has lost some of its gloss for the time being if compared to its peers but still Investments in India are still very very lucrative thereby giving the much required timely support to the rupee when needed the most.