Is Gold losing its shine? - Real Time Insight
January 10 2013 - 10:09AM
Zacks
After a bull-run lasting more than 12 years, gold has shown some
signs of weakness in the last few months.
![](http://www.zacks.com/images/upload_dir/1357838265.jpg)
The minutes of the latest FOMC meeting suggest
that several members want the quantitative easing to end in
2013. Continued easing by the Fed and other major central
banks was one of the reasons for the bullish run in gold in recent
years.
On the other hand, central banks have continued their gold
purchases. The demand in China may also pick up this year as the
economy recovers. The demand in India is holding up well so far,
even though the metal price is near all-time high in Indian Rupee
terms.
In fact the Indian government is considering some tax measures
to make the gold imports more expensive as massive gold imports by
the country are worsening the country’s current account
deficit.
I remain positive on the long-term prospects for gold for
reasons mentioned here. What do you think?
SPDR-GOLD TRUST (GLD): ETF Research Reports
ISHARS-GOLD TR (IAU): ETF Research Reports
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