Monday, April 15, 2013

Gold Clutched In Bear Market

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Few weeks back, I had written an article mentioning factors that impact gold price. At that time, the gold price in international market was stable and the currency conversion to local currency was impacting the gold price a lot.

However, situation has changed a lot over the last few days. Gold has fallen nearly 8% today and is at 2 year low at US$ 1376 per ounce. Gold had a dream bull run for the last few years but it seems to be loosing the sheen as it has broken significant support levels. Many analysts think that gold is entering the bear market now.

Is it a good time to invest in gold now after the prices have corrected significantly over the last few months? US economy is improving and the stock markets are at a high. This signifies that investors are shifting their investments from gold to other avenues like stocks. If this is indeed a start of bear market for gold, then it may not be a good idea for next few months at least. After the prices stabilize after few months, you can take a call again to invest in gold or not.
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