Logic 1@
In the month of Aug 2011 Gold hits over $1900/oz where INR spot was at Rs 46 Vs USD
As of now Gold corrected close to $700/oz where Rupee depreciated by 14 bucks taking it to 60 which indicates every 2 rupee weakness on every $100/oz correction.
I expect Gold to correct upto $1020/980/oz before it makes a comeback and if the trend continues as expected then another $200/oz could depreciate rupee by another 4 bucks taking it higher upto Rs 63/64 Vs USD.
Logic 2@
Many traders have been going short on INR since Rs 55 and has been just shorting since then.....they having nightmares. There short covering will leads to further depreciation of INR against USD.
The new smart guys who have never been into currency trading have been thinking of entering into currency trade by shorting when spot comes to around 61+-.....I believe they are also going to get trapped where there short covering will take it higher upto 63/64 max.
Note: Its an personal assumption/observation. My logic can go wrong.
In the month of Aug 2011 Gold hits over $1900/oz where INR spot was at Rs 46 Vs USD
As of now Gold corrected close to $700/oz where Rupee depreciated by 14 bucks taking it to 60 which indicates every 2 rupee weakness on every $100/oz correction.
I expect Gold to correct upto $1020/980/oz before it makes a comeback and if the trend continues as expected then another $200/oz could depreciate rupee by another 4 bucks taking it higher upto Rs 63/64 Vs USD.
Logic 2@
Many traders have been going short on INR since Rs 55 and has been just shorting since then.....they having nightmares. There short covering will leads to further depreciation of INR against USD.
The new smart guys who have never been into currency trading have been thinking of entering into currency trade by shorting when spot comes to around 61+-.....I believe they are also going to get trapped where there short covering will take it higher upto 63/64 max.
Note: Its an personal assumption/observation. My logic can go wrong.
Sir ji, this means there won't be ANY REAL benefit of gold going to $970-980 odd levels...is it?
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