Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us    
Union Budget
Budget 2011-2012 Home
Industry Expectations - Budget 2011-2012
Industry Reactions - Budget 2011-2012
Budget 2010-2011
Budget 2010-2011 Home
Industry Expectations - Budget 2010-2011
Industry Reactions - Budget 2010-2011
Contributor's Corner
Bonanza Portfolio
Hemant K Gupta
Krish Bhatt
Trinity Investments
Exchange Information
BSE 2009 Holidays
NSE 2009 Holidays
Investor Guide
Depository & Dematerialisation
Grievance Redressal
Investor Guide
Trading of Securities
Transfer of Securities
Your Rights
Budget 2009-2010
Budget 2009-2010 Home
Industry Expectations - Budget 2009-2010
Industry Reactions - Budget 2009-2010
Interim Budget 2009-2010 Home
Industry Expectations - Interim Budget 2009
Budget 2008-2009
Railway Budget 2008-2009
Industry Expectations - Budget 2008
Union Budget 2008-2009
Highlights of Budget 2008-2009
Summary of Budget 2008-2009
Industry Reactions - Budget 2008
Current IPOs
Past IPOs
IPO Subscription
Mutual Funds
Gold Exchange Traded Fund
MF Unique Holding
Forthcoming Dividends
ELSS Schemes Comparison
Tax Plans
New Fund Offers
Market Whispers
Tax Planning
Equity Linked Savings Scheme
Post Office MIS
9% GOI Senior Citizens Savings Scheme
8% Savings (Taxable) Bonds
Kisan Vikas Patra
National Savings Certificate
Public Provident Fund

| More

Gold not likely to glitter in 2016 - Amit Rathi

Posted On: 2016-01-20 05:32:33

Outlook on Gold by Mr. Amit Rathi (Managing Director - AnandRathi Financial Services)

Gold ended with negative returns in 2015 for the 3rd year in a row. In Indian rupee terms, spot gold ended with -6% returns in 2015 and around -8.5% CAGR for the period 2013-15. We expect 2016 to be no different with Gold maintaining its weak trend.

The factors that would put pressure on Gold include:

Strengthening Dollar

Dollar is at its strongest in 10 years and is getting stronger as the rest of the world currencies are turning weak. The US central bank has moved towards tightening the monetary policy after almost 9 years and there is a high chance that they will continue to hike rates in 2016. This would lead to an increase in demand for Dollar and pressure on prices of correlated commodities such as Gold, Silver, Oil, Copper, etc.

Falling demand for Gold: Demand for Gold from India, one of the largest importing countries, is likely to fall leading to a dent in the gold demand and consequently its price.

- Government initiatives to impact demand for gold - The gold monetization scheme of the current government (if it succeeds), where they plan to recycle existing private holding of gold, will cut India's gold imports substantially. This will impact gold prices even more.

- Indian household savings moving away from gold to Financial instruments - The demand for gold is expected to reduce as households are moving away from physical investment to financial instruments like Fixed deposits, Bonds, Equity, etc. on the backdrop of improved economic growth and negative returns by gold in last 3 years. The savings in financial instruments have increased from roughly 35% to upwards of 40% in the last 2 years.

Globally, economies' in deflationary zone: Gold is popularly perceived as a hedge against inflation. But most global economies are in a deflationary mode and the possibility of bringing in inflation in the coming few months is remote. Therefore, the desire to hold gold is expected to be subdued.

Source: Equity Bulls

Click here to send ur comments or to

Other Headlines:

OPEC and its output cap, the never ending story: Angel Commodities Broking
Nickel resumes its freefall after a brief rally: Angel Commodities Broking
Jeera hit all time high on export demand, diminishing stocks: Angel Commodities Broking
Edible oil slipping from 10 month high on record imports and higher oil seed production in 2016/17: Angel Commodities Broking
Sluggish Chinese economy hits base metals: Angel Commodities Broking
Will the rally continue for oil prices? Angel Commodities Broking
Battery demand prospects fuel Nickel to two-year high: Angel Commodities Broking
Castor seed heading for first monthly loss in 5 months in October: Angel Commodities Broking
Mustard prices likely to trade higher in coming month on improved demand: Angel Commodities Broking
Aluminium rules the commodity charts: Angel Commodities Broking
Zinc shines bright thanks to supply woes, China's RRR cut: Angel Commodities Broking
Weekly Agri-Commodities Update | Angel Commodities Broking
Double whammy of North Korea, S&P downgrade hits metals: Angel Commodities Broking
Early Chinese output cuts boost metals: Angel Commodities Broking
Weekly Agri-Commodities - Update - Angel Commodities Broking
Profit booking, weak Chinese data bother base metals: Angel Commodities Broking
Safe haven play back in gold: Angel Commodities Broking
Weekly Agri-Commodities Update - Angel Commodities Broking
Steel rally, Chinese demand prospects - win-win for base metals: Angel Commodities Broking
Turmeric surge on diminishing arrivals and improving demand: Angel Commodities Broking
Weekly Agri-Commodities Update - Ritesh Kumar Sahu - Angel Commodities Broking
Bull run in metals far from over: Angel Commodities Broking
Safe haven play back in precious metals, Oil falls on over supplied markets: Angel Commodities Broking
Weekly Agri Commodities Update: Angel Commodities Broking
Castor Prices surge on higher exports, crop damage: Angel Commodities Broking
Steel rally pushes base metals to new highs: Angel Commodities Broking
Oil loses its shine this week, Non farm payrolls the focus tonight: Angel Commodities Broking
Weekly Agri - Commodities Update: Angel Commodities Broking
Guar prices surge on good exports and heavy rains: Angel Commodities Broking
Nickel jumps to highest since April'17: Angel Commodities Broking
Fearing record imports, Pepper hit lower circuit on MCX and NCDEX on debut: Angel Commodities Broking
DX nosedive to 11-month lows; base metals rejoice: Angel Commodities Broking
Weekly Agri-Commodities Update: Angel Commodities Broking
Crude oil outshines the commodities space - gains solid 5 percent this week: Angel Commodities Broking
Turmeric prices surged to 11 month high: Angel Commodities Broking
Commodities loses its charm in the recent weeks: Angel Commodities Broking
Crude oil in a state of supply overhang: Angel Commodities Broking
Chinese economic recovery supports metals in June'17: Angel Commodities Broking
Rising ore supplies dim Nickel prospects: Angel Commodities Broking
Supply glut woes jump; oil markets slump: Angel Commodities Broking
Guar prices declines on good rain forecast and weak crude oil prices: Angel Commodities Broking
Commodities Perspective - Normalization of its balance sheet, the new agenda for US FED: Angel Commodities Broking
Cotton trade in a range in 2017, may drop on higher production and lesser exports forecast: Angel Commodities Broking
Currency Perspective - RBI cuts inflation projections on the back of robust monsoon season: Angel Commodities Broking
Chinese economic woes hurt metals in May'17: Angel Commodities Broking
GST for precious metals and diamonds finally fixed at 3%: Angel Commodities Broking
Double whammy of Steel and crude oil hits Nickel: Angel Commodities Broking
Cardamom surge 10.8% in a week on heavy rains in Kerala: Angel Commodities Broking
Oil prices - a game of inventories: Angel Commodities Broking
OPEC output cuts falls short of expectations: Angel Commodities Broking

Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2017