Gold Price Update 22nd Jan 2016
Gold of late has once again been in the news and has given a good bonce from the lows around 24000 INR but we do not see any significant upsides in Gold for now at least. Gold Prices have a good resistance between 27500-27100 INR and we see prices falling back from this area towards 24000 INR. The appreciating rupee (which we see at 63) in the next few months will restrict any bullishness in INR terms and hence if you are buying Gold for trading purpose then you must avoid Gold under all circumstances for now. Once prices near 24000 we will update what is to be done , but as of now do not look to buy Gold. The important point to understand is Gold is not going to run up significantly ahead of 27500 INR so the entire logic to buy is to make better returns and beat fixed income but we dont see that happening in the near term so please avoid any long exposure to Gold. If you have to be in commodities then buy coffee, sugar, wheat on dips as we see these agro commodities moving significantly higher from current levels and it is also possible to see euphoria in sugar and coffee stocks / commodities in the next 18-23 months from now.
Instead of buying Gold the best asset class to be in will be Indian Equities as we see a bottom very close from current levels and the risk reward ratio is in favor of buying the current panic.
Good Trading To You!