Tensions between the West and Iran may be escalating and this could be bullish for gold prices, said HSBC in a research note.
At the Multi Commodity Exchange of India (MCX), precious metals and energies posted solid gains for the week Feb 06- Feb 10, 2012. Base metals weakened except for copper which rose over 1%. In India, Commodity Transaction Tax once again sparked debate as the FICCI and ASSOCHAM opposed the government's proposed move. Indian IIP numbers came out much weaker than expected, dampening investor confidence.
Gold and silver are finding support and the end of 2011 was not a time to call the end of a trend, but to realize that gold and silver was providing a discounted buying opportunity. The mining shares have never been so oversold in this entire decade long run as it was in the end of 2011.
Warren Buffet's distaste for gold is well known and despite the meteoric appreciation in the value of gold, his view does not seem to have changed.
