Last Updated : 09 January 2013 at 09:45 IST
Why Gold will be bullish in later 2013
Source :Commodity Online/TD Securities
United States faces some "very challenging negotiations" between President Obama and the House of Representatives over the debt ceiling, which could mean a fiscal drag in the coming months.
- Precious, base metals may trade lower on strong dollar, rise in risk aversion
- Crude oil prices are expected to trade on the positive note on the back of expectation of decline in US crude oil inventories from API along with ongoing unrest in Middle East.
- read more
As per April 25 reports, Norilsk Nickel has announced that it is closing its Lake Johnston operat..
By Col. Ajay
As per financial astrology, transit OD Sun in Saturn house is ..
NEW YORK (Commodity Online): Gold may have over-reacted to minutes of the Federal Open Market Committee released last week and construed by markets to mean quantitative easing could wind down by year-end, said TD Securities in a commodity research note.
Gold fell on the news. The market may not stage a meaningful recovery in the short term with little U.S. economic data on the calendar this week and the Fed speakers scheduled to speak tending to be hawkish, they added.
TDS noted that, there are some reasons to be bullish on gold for later in 2013. "While we agree that the Fed will eventually unwind the monetary accommodation, it is too early to react to this possibility given current macro and political developments.”
"The economic environment around the world and in the U.S. is still quite poor." TDS looks for the Fed to keep buying $85 billion worth of mortgage-backed and Treasury securities per month for the foreseeable future.
Meanwhile, the U.S. faces some "very challenging negotiations" between President Obama and the House of Representatives over the debt ceiling, which could mean a fiscal drag in the coming months.
This, and spending cuts demanded by Republicans, could mean an economy that underperforms expectations. This should reduce the probability that the Fed will tighten sooner, rather than later—reducing yield and lifting gold, TDS concluded.
- Technically speaking: Why R.J. O' Brien & Associates thinks Gold could rally to $1500/oz
- Gold may not find support from physical market as seasonal demand wanes: Barclays
- MCX Silver bearish; support at 40,000 level
- MCX Gold bearish on weak global cues, downside expected near term
- Global economic surprise: Where has this Black Swan built its clandestine nest?
- Reasons behind the bearish Gold and why it may continue downward spiral