SELL GOLD AND NOBLE METALS

I think Gold is a sell from now onward. The gold is now trading at Rs.29706, in MCX, but I am expecting it to further break Rs.28, 000 mark in the coming days. The reasons could be many but primary among them could be the following:

(i) The world-wide inflation is expected to come down in the coming days, pulling down the demand for gold. 

(ii) The government is talking of improving the sentiment of the Indian Capital Markets, which could be looked in  a round about way to curtail the demand for gold. This means the gold demand as an investment could come down in the coming days. 

(iii) According to view of India Forex Advisors, “ Gold is trading at $ 1575 levels. Gold prices ended on a flat note ahead of the EU Summit, as market participants are not expecting any new measures will be announced to tackle the ongoing European Debt crisis. This may prompt investors to shift from Gold to US Dollar. Near term support is at $1558 levels, whereas strong resistance can be seen near $1592 levels (21 day EMA on the daily chart). Gold remains bearish as expected internationally in dollar terms”.

Gold has recently lost its safe haven appeal after the financial market turmoil caused by the Eurozone crisis. Moreover, Federal Reserve's decision to take only a modest step to boost the economy forced investors to cash in bullion to cover losses.

In such a situation, please liquidate your position in Gold and invest the money in the Indian Capital Market, especially in good infrastructure counters.