Amidst ongoing turbulence in gold prices, analysts from different parts of the world are coming with the polarized opinions. Some are arguing for bullish patterns, others for bearish, where some have chosen to stay neutral concerning the gold prices. In line with Ben Bernanke, defending stimulus of $85 billion a month to support the economy, the prices of gold still seems to head for the north. Thanks to Mario Draghi also, President of European Central Bank, for vowing on continuity of stimulus in the European economy.

As opined by Adrian Day, President of Adrian Day Asset Management in Annapolis, Maryland, “Confidence in a recovering U.S. economy as well as a strong global stock market has reduced the perceived need for gold.” This statement, by many investors, has been viewed as a caution concerning the pattern of gold prices and could be seen as a temporary fall in price amidst short-term reverse market fundamentals. Further, adding to above statement, he has also recommended this time to be a good buying time, as the major economies, going through stimulus regimes, are not believed to amend their economic agendas any time sooner.

With the fall in gold prices by 5.3 percent to touch a price level of $1587.06 per ounce at the international market, last month, investors had sold 103.7 metric tons of gold.

Despite fall in gold prices as witnessed during last month, with ongoing stimulus measures and commitment for more stimulus from major economies around the world, to name some, Euro zone, Japan and the U.S., the rising prices of gold seems inevitable. Amidst forecasted multiple rounds of quantitative easing and expected stimulus’ pressure on currencies, as referred by inflation, the gold prices, amid forecasts made by market analysts, could be expected to float around $ 1750 to $1800 by the end of this year, i.e., 2013.

Recovering from the sold zone, with increase in demand for gold from major consumer, India, the prices are likely to increase in the coming days. Thanks to forecasted rise in demand of gold from two major consuming nations, India and China. London based World Gold Council has predicted an 11 percent rise in Indian and Chinese demand for the year.

No matter how polarized the comments are coming out of the market, it is only time that will tell whether gold could provide greener pastures for the buoyant market or not.

Note: This blog is just an expression of the author’s opinion and cannot be deemed responsible for any losses incurred.