Gold had been one of the bright investments for the investors in recent. After Economic recession hit the world’s largest economy, the world market saw a large number of investors migrating to gold. Past two years gold rates had shot up to the sky, with increasing number of big and small investors taking up gold as secure and long lasting asset. Entrepreneurs from all over world gather at Dubai for international conferences to decide the prices in different carats and also to exchange views on its market scenario.
The yellow metal turned down all investors as in April Gold Market saw deep din gold price which was almost by 15% from January 2013.
European economy effects Gold Price
- Earlier in 2011, Gold prices shot up as US economy was facing the greatest economic crisis of the times. Market experts say that the Economic condition in Europe which in turned declined the value of the Euro is the cause of the latest trend in gold Market.
- Investors who are leaving gold and the Euro is migrating to US Dollars, as there are improvements in the US Economy.
- Compared to the all time high price of gold in 2011, Gold seems a have lost 30% of its price in mid of April.
- The gold decline started when a huge selling order was placed with a big investment bank which set off a tremendous downfall in the Gold price.
- All in all, with Europe’s unstable economy and heavy selling by big shots led to decline of the gold price.
Dubai Market reacts to Gold Price:
Dubai is one of the highest traders of gold. Dubai gold is also known for purity and Dubai is one largest market of Gold Bullion.
1. Investors avoid Gold
The current Dubai gold rate hit the investors and gold retailers in Dubai. The demand of Gold among the Dubai investors decreased. The Gold retailers who had not forecasted this downfall is predicted face losses.
2. Frantic buying by end customers:
Even though the price of gold would have hit investors on the other said this had turned events in positive for end Customers. With decrease in Dubai gold rate; people were found rushing to Jewelry shops and hysterically buying gold jewelries and Bullions. Many shops reported high demand for Bullions and coins. Indians, the highest consumers of gold in world, were stopping in the shops to accumulate physical gold. This shows end customer’s stiff finds gold as adornment and as an investment.
Analysts are skeptical about the upcoming trends in Market. Some experts say that the current trend in the US economy may not be much more promising which can change the gold trend. Another view of market experts is that investors may not prefer gold for the upcoming months of 2013. The gold has lost its shine for a time being making paper currencies much preferable investment. Dubai gold market can also view low investments, but physical buying of gold would all across the world.
