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Gold: Time To Buy Now?

September 27, 2013

gold ytd

By Ben Rooney @CNNMoneyInvest July 16, 2013: 1:49 AM ET Click for more data. NEW YORK (CNNMoney) Gold has been a losing investment for months. But in the last six days, the precious metal seems to have regained some of its luster, rising 5.8%. Last week, gold recorded its biggest weekly percentage gain since 2011, and it came after four weeks in a row of losses. Some believe this could be the beginning of a new momentum.

PRECIOUS-Gold drops on fresh stimulus fears, weak buying from China

Federal Reserve will begin tapering its bullion-friendly stimulus measures later this year. Weak buying from major consumer China, which was back from the mid-autumn festival holiday, also weighed on prices. After a surprise decision by the Fed last week to stick to its bond-buying stimulus, St. Louis Fed President James Bullard said on Friday that the U.S. central bank could still scale back the stimulus at an October meeting should data point to a stronger economy. Gold, often seen as an inflation-hedge and a safe-haven investment, is highly sensitive to the fate of the stimulus which propelled it to record highs in 2011. A Reuters poll of economists showed that many expected the Fed to taper bond purchases only in December. Forty-two of 61 economists said the Fed would now taper in December, the last chance for policymakers to follow through on Fed Chairman Ben Bernanke’s earlier guidance. “The Fed will not reduce immediately considering they downgraded their views about the economy in the (September)meeting,” said Chen Min, precious metals analyst at Jinrui Futures in Shenzhen.

Gold, silver rebound on low-level buying, global cues

Gold Sept 25

While gold gained Rs 320 to Rs 30,545 per ten gram after losing Rs 585 in last four sessions, silver recovered by Rs 390 to Rs 49,330 per kg, snapping Rs 2,260 losses of four days. Traders said emergence of buying by stockists at prevailing lower levels to meet the upcoming festive season demand and a better trend in global markets mainly helped in recovery in precious metals. Gold in New York, which normally sets price trend on the domestic front, traded marginally higher by 0.05 per cent to $1,323 an ounce and silver by 0.37 per cent to $21.72 an ounce last night. On the domestic front, gold of 99.9 and 99.5 per cent purity read rebounded by Rs 320 each to Rs 30,545 and Rs 30,345 per ten gram, respectively, while sovereign held steady at Rs 25,000 per piece of eight gram in limited deals. Silver ready rose by Rs 390 to Rs 49,330 per kg and weekly-based delivery by Rs 690 to Rs 49,480 per kg.

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