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Gold Price in Rupees Is the Culprit for Bearish Trend
Pinnacle Digest writes: In this article Adrian Ash discusses the endless bearish data coming out against gold. Gold prices have fallen in 7 of the last 9 trading days. This trend will likely continue with all the uncertainty in the global economy. Perhaps the most damaging speculative piece of data in the market right now (that is working against gold prices) isn’t the fact that QE is unlikely in 2012, but that Greece is on the verge of being booted out of the Eurozone.
It’s our opinion that whether Greece ends up staying in the Eurozone or not, the damage has already been done. And the likelihood of further bailouts for that country are looking slim. Confidence in the Greek’s ability to keep their word is at all-time lows. That’s saying a lot for Greece - a nation that has defaulted several times in its long history.
Lastly, Adrian Ash touches on India’s weak demand for the precious metal given the rising gold price in rupees. India, as we all know, is the largest gold buying country on earth and even their gold dealers are having trouble making a living, given the lack of demand.
The one piece of positive news for gold investors is that Morgan Stanley remains optimistic its price will rise again.
Click here to read article from Adrian Ash.