Monday, May 14, 2012

Gold Negative YTD In Dollars But Bull Market Not Over - Morgan Stanley

GoldCore writes -

Bullish silver bets on a silver rally tumbled 32% to 7,159, the biggest decline since late December. This is bullish from a contrarian perspective.

In the physical market, jewellery makers and speculators took advantage of last week's drop in prices according to Reuters and there are reports of physical buying interest and indeed “tight supplies” in the physical market.

Gold prices dropped 3.7% last week and silver fell 5.1% to $28.89/oz. The smart money, especially in Asia, is again accumulating on the dip.

Demand for jewellery and bullion in India has dipped in recent weeks but should resume on this dip – especially with inflation in India still very high at 7.23%.

Also of interest in India is the fact that investment demand has remained robust and gold ETF holdings in India are soon to reach the $2 billion mark.

Morgan Stanley has said in a report that gold’s bull market isn’t over despite the recent price falls.

Morgan Stanley remains bullish on gold as it says that the ECB will take steps to shore up bank balance sheets, U.S. real interest rates are still negative, investors have held on to most of their exchange traded gold and central banks are still buying gold.

Weak hands are again being shook out of the gold market but it remains prudent to retain an allocation to gold and those who do so will be handsomely rewarded in the coming months and years.

May 14, 2012 (Source: GoldCore.com)

http://www.goldcore.com/goldcore_blog/gold-negative-ytd-dollars-bull-market-not-over-morgan-stanley  


Comments



The Original
Vulture Speculator

Trading gold, silver and mining shares since 1980 with a focus on taking advantage of volatility extremes, Gene Arensberg analyses the markets through a basket of technical and fundamental indicators and shares his findings from time to time here at Got Gold Report. Mr. Arensberg has been quoted in the Wall Street Journal, Dow Jones MarketWatch, USA Today and dozens of other news organizations.

"I've been a huge fan of Gene and his amazing work for years..."

Brien Lundin, CEO, Jefferson Financial, Host of the annual New Orleans Investment Conference and Publisher of Gold Newsletter


Contact Us