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Gold to hover around $1,200 per Oz with downward bias: CARE
Oct 11,2014 09:26CST
industry news
Source:SMM
The CARE Ratings’ report on Gold released yesterday predicts gold prices to hover around $1,200 per Oz with a downward bias for the rest of the year 2014.

Author: Paul Ploumis
10 Oct 2014 Last updated at 07:56:50 GMT
NEW DELHI (Scrap Monster): The CARE Ratings’ report on Gold released yesterday predicts gold prices to hover around $1,200 per Oz with a downward bias for the rest of the year 2014.

According to CARE Ratings, the sustained dip in gold prices has nurtured doubts regarding the safe haven appeal associated with it. The negative returns on gold over the past two years have tarnished the image of gold as a gainful investment tool. The rising strength in US Dollar has made gold more costlier for holders of other currencies.

The global demand for the yellow metal has seen sharp decline over the year. The tough restrictions on imports imposed by Indian government have resulted in record low gold imports by the country. As per World Gold Council (WGC) Report, the country’s gold imports plummeted from 352 tonnes in Q2 2013 to 91 tonnes in Q3 2013 and 114 tonnes in Q4 2013. Although gold imports picked up in 2014, the annual gold imports in 2014 are likely to be lower than 2012 and 2013 by at least 100 to 200 tonnes.

The expected interest rate hikes by the US and the strengthening dollar are likely to result in further softening of the yellow metal prices. The increased physical buying from Asian countries including China and India may provide some cushion for gold prices. However, gold is unlikely to witness resurgence in prices in the absolute near term. The prices are most likely to hang around the $1,200 per Oz levels during the remainder of the year.
 

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