Gold is at its 6-month low, thanks to the collapse in the commodity prices. But, can we expect more downward trend in Gold in the coming months?
Why are Gold prices falling?
Gold is bought as a hedge for the falling dollar. Now that the dollar is gaining strength against the major currencies in the world (Dollar VS Euro), gold is loosing its sheen.
Why can gold prices go up?
India is the single largest consumer of gold and gold products. With the start of the festive season in India and record low prices in 6-months, we can expect that the demand from India would raise. This will put a lot of pressure on the falling prices of gold. It remains to be seen how much this demand would weigh in on the prices of gold.
On an ending note, an interesting article about how the price of gold changes is here