Bull market back in Gold?
Global Scrap News | 2013-08-29 13:19:29
Physical demand for the metal remains robust, geopolitical events in the Middle East are supportive and up-ticks in inflation in emerging markets are creating unsuppressed demand for the commodity.
By Paul Ploumis
By Jonathan Barratt
As we have already seen a 20% rally in gold from the lows of US1180 we have to assume, based on a technical footing, that the bull market is back with us.
Does the fundamental picture also support this?
The current fundamental picture for gold really could not be better.
Physical demand for the metal remains robust, geopolitical events in the Middle East are supportive and up-ticks in inflation in emerging markets are creating unsuppressed demand for the commodity.
We have just reached record highs for gold in rupee in India. Further, if the Fed continues to keep stimulus up to the market due to weaker economic conditions ahead then the USD will put in a weak performance, which by default will support gold.
