If this article in TOI is to be believed, Indian gold demand has been surging recently. It says demand increased 10 fold from the start of the year which is a little hard to believe but I don't know the numbers that well anyways. However, I think if it's seasonal factors that affect demand, wouldn't there be an arbitrage opportunity in storing gold using a low interest rate currency (after hedging for some other price movements like exchange rate, interest rates, etc.) and selling it in peak season?
Coming back to my thoughts on inflation in India running at a 12% clip and the POG, I'm beginning to wonder if the gold price can decouple from the price of oil and the US $ and continue to hold steady or rise in spite of a fall in those. Well, I'm going to sell some longs into strength at the 50dma and maybe let the rest ride (or set a downside stop).
Subscribe to:
Post Comments (Atom)
Posts
No comments:
Post a Comment