Precious metals correct sharply, yet a positive outlook!
Gold & silver nose dive during Diwali week after a 10-week rally Dr. Renisha Chainani, Head- Research, Augmont focuses on, gold and silver prices crashed in the Diwali week! A stronger US dollar, declining physical demand in Asian hubs like China and India, and profit-booking at recent highs all contributed to gold prices closing lower for the first time in ten trading weeks. As investors booked gains after a protracted record-breaking rise, gold saw its biggest one-day dip in more than ten years this week, falling more than 6%. The dramatic reversal is the result of months of speculative positioning linked to worries about fiscal weakness and anticipation of further rate cuts by the Fed. In spite of the sharp fall, gold's overall prognosis is still optimistic. Although silver paralleled gold's decline, it saw a more severe correction of about 9% as profit-taking increased following its big increase earlier this month. A brief rela...