An Update

In the morning view I mentioned that Bulls might have technical advantage at the point but really there is not much of fundamental to support that view, Well, guess what, Surprise, it has now found a fundamental too and that is Fed's reduction of stimulus program. That's right, now, for now a big economic crisis is dodged, but of course temporarily and that has helped traders to perceive an idea that it might prompt the Federal Reserve to hold back from reducing its monetary stimulus. That has helped gold push price about USD 35 per ounce (i.e. Rs. 845 per 10 gms).

You really can not justify the market, can you? All you can do is try to be in its side when you open a position.

Here are some quotes I've been updated by Reuters;

"Tapering will be postponed much further, so that's probably the main aspect behind the current spike in prices," Commerzebank analyst Daniel Briesemann said.

But while the immediate impact for prices was positive, most were realistic on gold remaining very much in the bear territory overall, with an improving global economic picture contributing to investors exiting the market.

"The sentiment for gold is still quite Bearish with outflows from exchange traded funds and the risk sentiment pretty weak. It is hard to see reasons why gold will be higher," ANZ analyst Victor Thianpiriya said.