Thursday, March 31, 2016

Bullish On Gold In Medium-Term



Trading Idea – Gold has corrected in the recent past in USD terms and I believe that this correction is a good buying opportunity for 2016. 

Idea Rationale – Yellen recently commented that the fed will not hike rates anytime soon as the global economy is weakening. I see weak economic activity as a positive trigger for gold. Investors will buy gold as store of value and with increasing “risk-off” trade. 

Long-Term View – I am bullish on gold for the next 10-years. The precious metal is probably the only honest currency and will trend higher as all fiat money depreciates on continued expansionary monetary policies. KOTAKGOLD and GOLDBEES are among the gold ETFs investors can consider besides considering exposure to physical gold.  

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