The primary purpose of this blog (Prithviraj Kothari 's view on Bullion Markets - MD, RSBL (RiddiSiddhi Bullions Ltd.)) is to educate the masses of the current happenings in the Bullion world.
BULL V/S BEAR (31/08/2014)
Over the past few days gold has been playing touch and go with $1300 mark. It has enjoyed a recovery as it moved strongly higher off the $1275 level. In the past week, gold was seen falling sharply at the key level of $1275. In fact , before plunging, gold touched the resistance around $1313.
It had also been easing lower and placing pressure on the support level at $1300 which eventually gave way resulting in gold falling sharply back down to a six week low near $1280 a few weeks ago. Over the last month or so the $1290 level has shown some signs of support and held gold up until its recent fall.

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Uncertainty Over Interest Rate Hike !!! (24/08/2014)
From December 2008, to September 2011, Bullion futures more than doubled to a life time high of $1,923.70 an ounce. Gold prices sky rocketed as the Fed purchased debt and cut rates to an all-time low to spur economic growth.

This year, gold bounced once again after its downfall in 2013. The metal rose 6.1 percent this year , partly as unrest in Ukraine and the Middle East increased haven demand.

This week investors eagerly waited for the minutes of the FOMC meeting that were to be released n Wednesday and the Jackson Hole Economic Symposium on Thursday and Friday that was expected to bring in some volatility in the market. Apart from this many economic reports were slated to release-

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The Sentiments are Bearish For Gold (18/08/2014)
On the first day of last week, gold was down. But it changed direction by Wednesday and bounced back.

This week too there was a lot in store for gold-

  • the GDP for leading economies including Japan, Germany, and Great Britain
  • the U.S PPI, retail sales, industrial production JOLTS, jobless claims and consumer sentiment reports .
  • Germany’s economic sentiment and GB’s inflation report.
  • Gold for the month of July was up by over 2 per cent mainly due to the escalating global tensions and the lower than expected US data

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Appetite for Gold Rises (09/08/2014)
When global risk escalates- financially and politically- gold is always considered as an insurance against it. The speculations that the Federal Reserve may raise interest rates has kept the yellow metal in small trading ranges around $1,300.
In the previous week previous metals were down throughout the week until the payroll data was released on 1st August which showed that the jobs added were less than market expectations.
These reports had raised speculation that the Fed could soon raise interest rates which would then increase the opportunity cost of holding gold.

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Interesting Times to Come (02/08/2014)
Last year was catastrophic for gold as it performed terribly and ended the year at around $1200, almost 28 per cent down.
However, in 2014 we saw a decent act from gold as it reached $1380 in March before falling back to $1240 and then ,moving up to $1340.
Since then gold has been hovering around $1295, approximately 8 percent up. This highlights a good progress for gold but if we compare it to its life time high of $1900 (In September 2011), it's still 32 per cent down from its peak.
Currently, gold looks weak.

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This blog contains my opinion, which is not to be construed as investment advices. Information provided in these blogs is intended solely for informative purposes and is obtained from sources believed to be reliable.