Yeah, I read an articale in bloomberg about the gold and silver prices. It seems there is no upturn until end of summer. Look for gold to hit at or slightly below $800 an ounce this summer.
“With gold prices continuing to be capped under $915 an ounce, I would look for the market to roll over and play bear,” Ralph Preston, a commodity analyst at Heritage West Futures Inc. in San Diego, said in an e-mail. “A close under $853 an ounce projects another move down towards $800 an ounce.”
India Demand
Still, some analysts say gold may be poised to rebound.
“Any major further correction in gold will see solid buying -- and that if no correction occurs, Indian demand will pick up strongly in August/September,” John Reade, UBS AG’s head metals strategist in London, said today in a report.
India, the world’s biggest buyer of gold, imported 10 metric tons in the first 15 days of April, compared with 24 metric tons in all of April 2008, Reuters reported from Mumbai yesterday, citing Suresh Hundia, head of the Bombay Bullion Association Ltd. India didn’t import any gold last month, compared with 21 tons in March 2008, according to the bullion association, a group of 230 traders.
Investors buy gold and other precious metals as a hedge against accelerating consumer prices and a weakening dollar. Investment demand for precious metals slows when consumer prices fall and the dollar strengthens
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