Wednesday, April 21, 2010

Commodity Online Poll Finds 93% Expect Gold To Fall

That's quite the majority. The most popular reason given for the gloom was the recovery in place:
In an online poll of a sample size of 21,600 respondents selected from across the globe, 93% or 20,100 of the total sample size had opined that there would be a fall in gold prices due to a recent upbeat mood in the global equity markets, while only 1400 respondents contradicted the stand, while 0.46% did not comment on either side. This showed that most of the respondents believed that there would be a fall in gold prices in near future due to recovery in global equity markets....

The global economy is recovering with rapid pace and the risk appetite of the investors prompting them to undertake higher risk involved in investment instruments other than gold would inevitably result in a reduced gold demand thereby pulling down gold prices. However, 52% of the respondents did not agree to the argument that increased risk appetite will bring down gold prices.

Similarly, of the total respondents as many as 53.1% believed that US dollar would replace gold from its status of ‘safe haven’. Looking at the recovery of US economy from the nightmarish recession which had started from the US and hit the world economy in 2008, dollar was found gathering steam once again. However, 46.8% of the respondents contradicted the view and maintained their skepticism towards dollar and put gold to their preferred investment mode.

It's not a very inspiring result...except for contrarians.

2 comments:

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