In my opinion the physical supply and demand can support higher and possibly much higher price of gold. The geopolitical and Inflation factors could also support much higher gold price under some circumstances. Gold is still somewhat undervalued asset when viewed by some perspectives.
Lately there are lots of bullish market comments regarding commodities and especially gold, contrarian investor might suggest that this is a sign of some kind of top. However, this is the third Elliot wave for gold and public participation is normal at this stage, any pullbacks are supposed to be shallow.
Technically, the price of spot gold is still very strong, a short term trend line is broken and another trend line is established almost immediately.
Mr. Gary Dorsch www.sirchartsalot.com Published interesting market commentary ( Forex , Gold , Central Banks , commodities and a bit of geopolitics) - link
2 comments:
I am concerned about India's gold jewellery demand. Esp since in Rupee terms, gold is now more more expensive than in the 1980 peak.
http://www.financialsense.com/editorials/phillips/2006/0409.html
"This explains why the gold jewellery market is down 40% this year to date and has been for over six months. Indeed it is 186.66% higher than when gold was $850 an ounce."
http://www.resourceinvestor.com/pebble.asp?relid=18808
“From what we’ve heard for the first few months of this year, we could see jewellery demand slumping back almost 500 tonnes for the full year. That’d leave jewellery offtake some 400 tonnes below mine production. That’s just not sustainable in the long term.”
Thats possible but unlikely, rising investment demand, & possitive central bank transactions, might come in quickly then decline in global jewlery demand if at all.:
http://www.gold.org/value/stats/statistics/gold_demand/index.html
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