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Topic : GOLD PRICES
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Created by : GANESAN , ASST MANAGER, HDFC Bank  | 11 15 2009 12:56:47 +0000
Industry : Investment BankingFunctional Area : Capital Management(Corporate Finance)
Activity:  177 views;  last activity : 07 06 2010 20:18:09 +0000

Is the gold prices are going up is due to trading the same in commodities market. As the share prices were going up and down

 
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Is the gold prices are going up is due to trading the same in c Vs or really the gold prices were going up, based on real demand
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is the gold prices going up based on real demand


By GANESAN , ASST MANAGER, HDFC Bank  | 11 15 2009 12:56:47 +0000
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Gold prices are going up and expected to do so because of the status of "safe investment" tag which it carries. All along in the Global financial markets Dollar was the safest instrument but in the last 5 years or so this has been changing coupled with the effect of crash of the US economy and some nations wanting to delink the US dollar for the trading system.

This is expected to increase the investment exposure of gold which will eventually push the demand and in turn increase the prices


By Balaji Nagarajan, Sr Manager Marketing Services, Congruent Solutions Private Ltd  | 11 30 2009 07:56:13 +0000
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Gold prices are decided based on demand & supply equation in the open market.The gold mines cannot cope up the demand of gold whereas consmption from nations like India who is the largest consumer of gold is always increasing.On top of it central banks from various countries buy and sell gold based on their economical requirements.The gold prices are sumtotal of above all.

The trading of gold can fluctuate prices at the most to 2-5% and on short term basis.The long term trend of gold is always increase in price.

In current weak dollar csenario with pathetic returns from assets like real estate the safe bet of investors is gold.

That is why gold prices are increasing.

 


By Shailesh Vadalkar, Business Analyst, Al Rostamani Pegel LLC  | 11 15 2009 13:55:03 +0000
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