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Gold scintillates at 20-year high
 
Gold scintillates at 20-year high
Real price of gold has declined internationally by 50% since 1983. Yellow metal priced at Rs 6,950 per 10 gm, Current stocks stands at 1,53,000 tonnes ,Market players stay bullish. The fact remains that the holders and Not the producers ,of gold have the market power. International bullion market participants such as Barclays Capital are bullish on the overall commodity market environment. T Gyanshekhar of Commtrendze said " Price Could fall only after that due to a market correction." Harmeet Arora ,vice President ,said ," Local industry is awaiting down fall. However, current price signals looks very strong." What sets gold apart from other commodities ,besides Being nondestructible and homogenous across global markets ,is its attraction as an investment commodity. Money-like attributes of the metal are often exploited for hedge against major currencies like the US dollar and the yen. Recently ,the spurt in gold price was aided by institutional investments in the West. Though market figures are not available, data released from future market seems to suggest that buyers dominate the market ,thus putting pressure on the gold price. Only a week ago ,commercial hedging positions in the benchmark Newyork Mercantile Exchange were less than the total speculative positions. Since then, commercial position in the US exchange Has been reported to have increased considerably. In the week ended October 4 ,short positions from commercial Traders outnumbered the buyers. However ,total sellers in the exchanges were marginally more than the buyers.
Posted On : 10/13/2005 5:21:00 PM

 
 
 
Gold scintillates at 20-year high