Chances of getting gold cheaper in 6 months
Posted on: 05/Aug/2013 12:57:02 PM
Those who are crazy of the yellow metal, there is some good news. Most of the people and financial experts know that gold prices move in line with statements of Federal Reserve and US data. There are chances for people to buy gold cheaper six months down the line.
The simple and the most important reason is based on the argument that the US Federal Reserve would begin tapering its quantitative easing programme, at least by the end of the year.
The Federal Reserve’s QE (Quantitative Easing) program has a stand out. In this scheme, the government prints record amounts of money; trillions of dollars in fact and effectively deposits that money into the bank accounts of real estate and stock speculators instead of allowing it to circulate.
The Fed wants to see job rates improving before it scales down and completely unwinds its stimulus. There are signs that the economy in the US is growing and job rates improving. The manufacturing data which came out of the US was also encouraging. Therefore, we are likely to see the Fed tapering its programme somewhere in December and this could make gold cheaper.
But the problem is for the Indians buying gold in cheaper price. If international prices of gold fall and so does the rupee, we are unlikely to get gold cheaper, because of the falling rupee.
