For the first time this year, gold traders feel pessimistic about the gold price movements. About 15 of the 29 analysts surveyed by Bloomberg predict, the price of gold will sag in the next week. While five others analyst chose a neutral.
There are several causes that underlie it. Among other things, the Federal Reserve gave no signal of monetary stimulus will be poured in the near future. The Fed is unlikely to do quantitative easing. If you see the U.S. economy is getting better, then it is negative for gold.
Another factor is the strike of the gold jewelers in India related to tax increases of gold imports. According to the Bombay Bullion Association on April 2nd, the level of India's gold imports fell by 81% in March. Even foreseen, in the second quarter, the import of gold will be dropped 40%.
Jewelery market in India has an important role in shaping the gold price. If the strike continues, then in the long time will give an enough worrying for the price of gold.
Gold futures fell to their lowest level in 12 weeks. Yesterday, the contract price of gold for June delivery fell 3.5% to U.S. $ 1614.10 per troy ounce on the Comex in New York. This is the biggest drop for the most actively traded contract since February 29th. In the previous transaction, the price of gold had touched a new U.S. $ 1,613 per troy ounce. This is the lowest level since January 10.
The decline in gold prices as a signal that the Federal Reserve will not be poured economic stimulus. Conditions that lead to the mighty dollar and diminish the charm of gold as an alternative investment.
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