Gold as the Crystal Ball

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A poll of 50 traders and analysts conducted by Reuters in January sees the gold price averaging at $840 per ounce in the fourth quarter of this year. The lowest forecast came in at $687.50 per ounce."

As yesterday, while the rallies are welcome and much needed, a lot will depend on their strength and longevity. A couple of days henceforth Indian seasonal buying will have passed and gold supplies will need to find new takers. Keep a lookout for corrections in oil. Be mindful that a concept that had long been absent from the gold market scene has been brought out of deep-storage overnight: mines might begin hedging once again, after the lengthy period of de-hedging they went through.

Happy Trading.