Time To Buy Gold

Caught in the middle of a roar to gather cheap buys and Crude positions, Gold seems to take the back seat most of the times in the mind of a regular investor. Apart from European and US traders and those in China in the 3rd quarter before the Chinese New Year, very few seem to be actively interested in Bullion when there are more handsome avenues to make money.

Recently, Gold has been range bound between $800-$850 and a fact that almost everything is benchmarked to the dollar means that as a consequence of dollar weakening, Gold prices rise and vice-versa. In the current context, if hurricane Gustav hits the Northern US Gulf coast sometime on the 2nd of August, 2008, then it can push crude prices up and consequently affect Bullion. With oil prices expected to see an upside in the coming weeks, this could be a good time to gather Gold in phases.

Though the near term scenario for Gold is weak, buying in now in phased corrections can be beneficial. With the Indian festive season approaching, followed by the Chinese New Year, this is the ideal time to gather Gold and sell it during the Chinese New Year. The Global demand for gold every year peaks around the Chinese New Year.
So buckle up and go Gold hunting…