Week ending 22 Sept 2012 saw a loss of Rs 374 on Gold October contract whereas on monthly basis, there is still a profit of Rs 559. So long term investors need to stay on. Week also saw a turmoil when Govt was threatened for destabilization on Thursday but stayed on on Friday after Mulayam Singh assured its support. So maximum loss came on Friday only. Approval of FDI in retail, hike in diesel prices and consequent reduction in subsidy bill has renewed investors' confidence in India.
Due to influx of Dollar/slackened demand, rupee also has appreciated nearly 4% in a week which also has put pressure on Gold. But hopes of Spain debt bail out, QE3 and Japan also starting QE are positive for the gold trade. I see rupee appreciating to Rs 52 and Gold rising to 1900$ per ounce, hence gold futures are likely to rise to 32800/33000 by year end.
For those who want to enter/ reenter the trade, they may do so in the range of 31350-31500 on October contract for a level of 31800 by Thursday.
For those who want to enter/ reenter the trade, they may do so in the range of 31350-31500 on October contract for a level of 31800 by Thursday.
Happy Investing....
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