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The prices may also gain momentum on the back of rising inflationary pressures in the economies and on demand from central bankers of Turkey, South Korea and Russia.

06 Oct 2012

Commodity Online
The appeal of gold would continue to get support as the US ‘fiscal cliff ‘ deadline comes around at the end of 2012 under which an agreement has to be reached that would cut the federal budget or trigger $600 billion in spending cuts and higher taxes that were put in place last summer.

“This would be negative  for the already stalling economy which would act as a favorable factor for the metal.” said a report from Angel Commodities.

The prices may also gain momentum on the back of rising inflationary pressures in the economies and on demand from central bankers of Turkey, South Korea and Russia.

Additionally, Spain would be a focal point which would tend to dominate the global market sentiments thus driving the gold prices higher up, the report added. 

In the Indian market gold is likely to ease on the back of strengthening rupee mainly on account of several measures by the Government of India to allow foreign direct investment (FDI) in the multi-brand retail, aviation, power exchanges and segments of broadcasting.

The largest consumer of the gold can see an upturn in the demand as the fourth quarter is the usually a stronger quarter due to the festive season.

"Hence, the major beneficiary from the various stimulus measures adopted by the central bankers would be the precious metals pack which could see an upside in the prices in the short and medium term." the report from broking firm concluded.


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