The current low gold prices will encourage further buying of physical metal, but expect the overall picture to remain volatile.
Author: Julian Phillips
Posted: Friday , 13 Sep 2013
The gold price is now just about on support in the Technical picture. The precipitous fall was in the absence of selling from the U.S. Prices at these levels will encourage physical buying from investors worldwide as well as central banks. We expect the next month to see a volatile and very changeable market that may well confuse investors in precious metals.
The situation in India with government blocking imports and looking into ways to ‘harness’ privately owned gold gives a fascinating picture into what can happen to gold when a nation is under pressure on its Balance of Payments, which India is. It would be accurate to say that the Indian government is manipulating the gold market tremendously, but we do recommend that investors take a close look at events there to see what can happen to your gold when government gets involved.
We do not believe this to be the only country to contemplate the road they are now walking there. Ostensibly the government has blocked gold imports to ...