Here's some amazing facts about Gold this year in 2016:
- Investors have put in $3.2 billion into gold in last two weeks - it is the biggest two-week gold inflow since May 2010
- The fund's inflows into Gold ETF since the beginning of the year have already surpassed outflows for the whole of 2015.
- Gold is up 14.6% Year to Date.
Here's the Chart of Gold
Despite strong bounce in S&P500 from 1810 and decent comeback in Dollar in last few days: Gold has managed to hold on to gains
The Biggest Bullish argument in favor of Gold
Central Banks have pushed easing to its limit with Japan now adopting Negative Interest rates. All the major financial drivers have helped Gold this year be it the Fed futures curve, the dollar weakness, and intense volatility in equity markets. In such environment: Gold becomes the best bet as Gold is perceived as the best insurance policy in times of financial chaos
Even though structurally Gold is in Bear market, it's important to track it closely from here on. Any sustained rise from current levels can change perception and bring in more bullishness. The chart is clearly telling one thing: Don't rule anything out and closely monitor the chart. Having said that - it's still not time to be bullish on Gold. If Fed continues to tighten in 2016, then Gold can sell off pretty sharply. So, it's a tough time to make a decisive call on Gold
In India, this is how GoldBEES ETF Chart looks like -
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Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers