Gold's correction is not over!

NEW DELHI (Scrap Monster) : The excitement created by gold is almost over. Expectations are waning as more downside fears are looming large on the near term price prospects of the yellow metal.

The latest US jobs data pointed to recovery of the world’s largest economy. The US economy added 175,000 jobs in May, beating the median estimates of 170,000. The stock markets had every reason to cheer; gold prices fell on the back of strong run in US equities. 2013 continues to be a challenging year for gold investors and buyers as well. The global economic situation seems to be highly hostile to gold, with the yellow metal going through toughest times ever.

Indian Government and the country’s central bank are in all out efforts to scale down the gold imports into the country. Early reports post the new government regulations suggest that the gold demand saw a marginal fall during the recent week. With festive season demand coming to an end, the demand for gold is expected to further subside in the coming days. Investors are seen sitting on sidelines in anticipation of further fall in gold prices.

The safe haven appeal of gold has almost faded away. With inflation under control and the gold prices looking highly vulnerable, the roller-coaster ride is expected to continue through the rest of the year and the trend is likely to continue in 2014 as well.