The Commodity that actually rules the world is now in the situation of dilemma. On the annual scale basis first time in the last 13 years of the history the gold has fallen down to such key levels. Although this fall is only in the global commodity market. If we measure the market experts point of view for the trend of gold they all are clear on one point that if the Indian rupee gets stronger against the Dollar, the gold may come down to 27,000 till the December 2013 this year.
In the month of November gold has witnessed a movements of around 5%. After the month of June this month has witnessed a major fall in the prices of yellow metal. In the year 2013 Gold has seen a down of more than 25% around. Although this fall is majorly in the international commodity market. In the domestic market the gold is still trading above the level of Rs. 30,000 but appreciation in the Rupee at any point of time in the short term may drag the gold prices down.
The fundamentals of gold are extremely weak. There is sudden decline in the demand for the gold world wide except China. A Increase in the import duty also impacted the demand for the gold and it's import in India.Investors are taking out their money from gold ETF investment. Actually there is fear among the foreign investors that any cut down in the Q3 will lead to strengthening of Dollar which in turn will lead to the fall of gold prices.
Gold Trend in India is expected to remain on bullish side ahead of the wedding seasonal demand. Whether it is India or US one thing we all need to admit is that the volume of gold trading has been reduced by more than 50%. Gold may come down in the last December around Christmas and New Year 2014.
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