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.
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
