Gold reclaims Rs 26,000 level, but bounce may be shortlived
A brisk 4 per cent surge in the domestic spot gold price in early January may have taken investors by surprise, but commodity analysts feel the rise is nothing but a dead cat bounce.
While China’s move to peg the yuan-dollar rate lower for eight sessions, its poor PMI readings and slump in equities rattled global equities, gold has been seeing some safe-haven buying after months of relentless selloff.
Gold prices (in dollar terms) had been in bear territory for 52 months till December. Since September 2011, the prices have fallen around 44 per cent.
This was the worst bear run for the yellow metal since a 55.90 per cent fall between February 1980 and March 1985 that lasted 61 month.
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