Personal Finance Blog India –

Two IMP Reasons Of Fall In Gold Prices:

Gold Prices have witnessed sharp bloodbath within last few days.Prices corrected sharply after important developments in US & European countries.In India also prices sharply come down from level of 29300 to the level of 26,800 within few sessions.

Today we will look at the important reasons of correction in Gold prices:

  1. Last week,Federal Reserve of America indicates the winding up of the Quantitative easing programme & Gold have indirect relationship with printing of currency so it was inevitable for Gold to react sharply.
  2. One may aware about developments in the European countries like Cyprus where banks & whole economy is in big trouble.There was a news that such European countries like Cyprus can sell Gold to raise the capital & it has impacted Gold prices sharply.

Whether its Equity or its Gold always runs on speculation & emotions.Today both equity & Gold have weak sentiments.Both of them have their won reasons for weakness.

Any asset can not give investors double digit returns decade after decade & healthy correction is always needed for step ahead.

Bearish & Bullish cycles will follow in future also & investments made in bearish phase should reward investors in future.

Category: Commodities


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