Gold Prices in 2012 –
Gold ETFs returns From India in 2012 : Average 9%.
International Gold Returns : 7.5%.
This was the return scenario of Gold in the year 2012.After sharp run up since last decade Gold prices have still managed up direction.
Gold Prices – 2013 :
Its also important to have view on Gold prices in the year 2013 & which factors will affect Gold prices.
I think Gold Prices in 2013 will be either stable or sideways up.
Possibly No Rate Hike By Federal Reserve – Federal reserve – America have already declared that there won’t be any interest rate hike from current till 2014 mid year and unemployment rate of at least 6.5% is achieved..Rate hike from Federal Reserve will be major indication of improving the economic conditions and bad news for precious metals..But it seems to be difficult to happen in 2013.
Currency factor – As far Indian Gold prices are concerned,currency factor is very much important.Stronger Rupee can drag down the Gold prices in India.But under current situation,there is no reason for Rupee to get stronger or US Dollar to get weaker trend.
International Prices are not at peak level – Currently International Gold prices are trading around $1650 per ounce,peaking out from level of $1920 in initial days of Sept year 2011.So its not the case either that Gold prices are trading at life time high levels.
Bottomline – Regular Up / Downs are part of the market.You may aware that since last few days Gold is trading down due to fiscal cliff worries but in general,Indian investors buy gold for ninth generation and buying Gold in systematic way will still prove fruitful in future also..and I think most of the Indian peoples are already doing this ..isn’t it????
