Golbal Trends -- IIFL IJK Rupee is expected to appreciate in the near term on foreign inflows in India as domestic company earnings improved. Also, US president Barack Obama passed a bill to avert debt crisis which extended the government funding till Jan 15 next year and also raised the debt limit thru feb 7. Long term investors can accumulate gold and silver in current month as rally may be seen in the month of November and December.Gold prices had plunged as much as 28% this year on fear that the Zero yielding asset would fall out of favor as reduction in the Feds stimulus efforts prompt interest rates to rise. But Economic growth is a key consideration for the pace and timing of reducing its $85 billion a month bond purchase.The potential for fiscal issues to crop up again likely means that Fed wont dial back its stimulus measures before next year on a fear of disrupting the pace of economic growth. Gold demand in India has grown more than 150% over the past five years and demand Thailand has increased 200% while in China 350%. Rally in Comex gold may be seen till $1635 from the current level of $1315 and Comex silver @ $34 from the current level of $21.80. Currently we are waiting for the event on 29th and 30th policy meet in India as well as US.
Posted on: Fri, 18 Oct 2013 04:31:50 +0000
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