Gold: Prices to trade bearish going ahead - ICICI Bank : Treasury Research

Gold prices have plunged from over USD 1400/oz levels in early June to around USD 1200/oz levels currently. Increased speculation over scaling back of asset purchase program by the US Fed following the June FOMC meeting weighed sharply on the bullion. Continued sell-off in gold ETFS coupled with concerns over gold demand from India further added to the losses. Speculation over Fed tapering would continue in the coming months, which would further weigh on the bullion. However, the pace of sell-off is likely to be less sharp as markets have already started to price in QE tapering.

Source : Equity Bulls

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