moneycontrolMoney Control hosts a discussion on gold prices, as it has been a bumper month for gold with record returns in November. The discussion also covers crude oil prices and the upcoming OPEC meeting.
Gold Prices Soar: What’s Behind The Surge?
Gold prices have been on a steady rise, with November being a bumper month for the commodity. The trend has trickled down to the domestic Indian markets as well, with a discount of 15-20 dollars per ounce. The demand for gold has been on the rise, with buyers splurging on physical, central bank, and investment buying.
Gold: Technical Analysis and Projections
Analysts suggest that the all-time high prices have been influenced by the five-month surge that the gold markets witnessed at the beginning of December. Technical charts have indicated significant profits from gold, with December projections pegging the prices at $1870 per ounce. Technical charts analyze the moving average prices of gold, and such charts suggest that gold prices are rising and are likely to remain steady in the near future.
Gold: Historical Trends and Investor Dilemma
Despite the recent surge, gold has not always been a safe-haven commodity. In the past couple of years, gold did not provide investors with the lucrative profits that now have the bullion market buzzing. Concerns about the future and the reliability of gold had many investors shying away from investing in it. But recent market trends have most investors pondering on how to invest in gold.
Silver: Trends and Prices
The recent rise in gold prices has had a trickle-down effect on the price of silver. The demand for silver has gone down, while the discounts have gone up. The price of silver is 40 to 50 cents cheaper in the Indian markets. Experts predict that in the second half of December, with the holiday season and the inflow of NRIs into India, the demand for gold may swell again.
Oil Prices: OPEC Meeting and European Union Factor
The OPEC meeting on December 6th will have significant implications for the price of crude oil. The decline of 13 million barrels of crude oil in the previous week has caused prices to soar. Furthermore, discussions by the EU on price caps for crude oil prices are expected to impact prices significantly. Overall, prices could move by $4-$5 in either direction.
Volatility: A Cause for Concern?
With increased global market movements, investors are wondering if there will be any excessive volatility. The possibility of future sudden surges, even if only for a few dollars, could cause huge losses for investors. Thus, investors are urged to proceed cautiously and mindfully.
In Conclusion:
The recent surge in gold prices has been unprecedented in recent years. Analysts predict that this trend is likely to continue for some time, and there are projections that gold may hit $1870 per ounce in December. The demand for gold has had a trickle-down effect on the price of silver as buyers splurge on gold purchases. Additionally, crude oil prices are expected to fluctuate soon, with the OPEC meeting and the EU discussion on price caps. Investors are urged to proceed cautiously given the current global market movements.
