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What market fundamentals can affect the gold futures?
By Capitalist | November 25, 2008
Gold is great to look at and adds ethereal beauty as jewelry. Moreover, owing to its lesser presence, it is a highly sought after market commodity. Liquidity crunch can play big time with gold mining. Massive gold selling to raise cash for letting other financial portfolio breathe, can also severely affect gold futures.
Gold demand has been on an unprecedented high in parts of Asia and India in particular, not to leave Germany and Switzerland. This unfortunately also was a time for price-fall in gold. This however is against the market dynamics and soon either the prices will soar high or the demand will comedown.
People will be looking to buy more gold as dollar continues to weaken globally in the face of mounting recession. So if dollar stops to trade high, Europeans also may look to convert their dollars into gold.
Topics: Gold / Bullion, Investments | No Comments »