Gold price declines sharply in India today and the forecast for gold prices

Gold prices in India will not grow

In brief: Passing era expensive gold on world markets - analysts believe. Gold prices in India continue to fall.

Gold price fell sharply reduced during the day in India. Today gold price in India was lower than on the global markets for 5-7 dollars per ounce. The debt crisis in the eurozone pushed investors to invest in gold, which led to an increase in purchase of gold coins and ingots on the world market, as well as to higher prices of stock exchange index funds, secured this precious metal. Gold reserves of the largest fund SPDR Gold Trust reached a record 1,200 tonnes, valued at 46.88 billion dollars.

Gold in world markets since the beginning of 2010 have risen in price by 15%, which increased the profitability of investments in this precious metal as compared with bank deposits in foreign currency. Global demand for gold in the first quarter of this year decreased by 25% to 760.2 tons (24.4 million ounces) compared with same period last year. However, since April the cost of goods grew by 11%, and on June 21 set a new historical maximum at 1264.59 dollars per troy ounce. Cost yellow metal in Ukraine depends on world market prices and, at the moment is about 318 hryvnia per gram. “The time to invest in gold on all the characteristics of the market is already taking place. Until the late summer of significant growth, which will override the profitability of investments in deposits or in the stock market, and gold should not expect. All the price movement will focus in part to 1,280.00 dollars per ounce, from the current price does not exceed 2.1% “, – Vladimir Oleksyuk forecasts, expert analytical department X-Trade Brokers Ukraine. Investing in gold as compared with short-term deposits in national currency at today is not profitable, as average interest rates on such bank deposits for two months and are above 2.71%. Foreign currency deposits until the end of summer, people can bring profitability to 1.3%, while deposits in euros, get a “sweet” bonus in the form of the growth rate of the single currency in the global Forex market to a level 1.2850 (+4%).

A more promising investment can be platinum. This product has a rapid decline after the May at $ 280 with a two-year maximum of $ 1,731.00 an ounce began to rise in price. Given the small volume of trades with a view to investment and increased demand in the automotive industry as a catalyst combustion exhaust gas, this tool is more volatile. It is worth noting market forces long-term growth rates in platinum. Since South Africa provides approximately 79 percent coming into the world market of platinum, reducing the supply of the metal from South Africa necessarily affect the price. In addition, stricter environmental regulations is forcing American and European automakers are increasingly using platinum catalysts. If you buy the same ingot of the product must pay the full cost, including value added tax, as well as a fee for storage and spread in average 9,8% in the sale. Thus, the best would be an attachment to an impersonal (no real delivery) precious metal. Thus, getting more liquidity position, which can be closed at any time with a minimum of a spread in the market 1-0,6%, at world prices of the Chicago Mercantile Exchange. But using the leverage to increase potential profits even modest growth.

Ukrainian Globalist
2010-06-23 18:25, Commodities.

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