Gold

Yesterday in the Times of India of 10th November 2013, I was reading an article by Mr. Gurcharan Das on Gold. He pointed out many factors taken by RBI (Reserve bank of India) because of which gold prices got a bit deflated and he expects gold prices to come down in the future.

In my Analysis the exact reverse is likely to happen. Despite the surprise Interest rate cut by the ECB gold held on above 1300 USD. It was only on Friday with some good numbers of Non Farm Payrolls coming from the US that Gold actually went down. I do not expect gold to go lower than 1261 this month and then to slightly recover to around 1300 levels by month end. Next month gold might try the low once again, the reason being that in January Mr. Bernanke is to leave office and in all likelihood Ms. Janet Yellen is to become the new FED Chairperson.  So, though gold usually is bullish in December and January it is likely to get bullish only in January end or beginning of February 2014. I expect gold to close around 1350 by the year end and see every dip as a buying opportunity.

Moreover with Money printing continuing gold and silver will benefit as currencies globally lose value. As far as the Non Farm Payroll numbers are concerned they are usually good during this time of the year due to approaching Christmas and new year holidays. Moreover the number is a surprise because the numbers have gone up even though there was  a US shutdown which is likely to happen again on Feb 7^th the next date for the debt limit to end.