Gold: Prices rose in July but expected to trade bearish going ahead - ICICI Bank : Treasury Research

July 2013 has been a favourable month for gold prices. International spot gold price, currently at USD 1320/oz rose by 7.6% in July, the largest gain this year and sharply in contrast to an average per month decline of 4.9% seen in the first six months of 2013. Despite the firm gains in July, on a year to date basis, gold returns are still negative to the tune of 20%. Despite some relief in July, broad based speculation over scaling back of asset purchases by the Fed going ahead this year continues to persist. Consequently, we expect prices to trade bearish in the rest of the year and trade around USD 1200-1250/oz by end 2013.

Source : Equity Bulls

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