The performance of gold obviously depends on the U.S. economic condition and the Fed’s future actions. In the short run, the end of QE3 will most likely not change anything and gold will most likely decline on a dollar rally.
A joint report released by the World Gold Council (WGC) in association with the Federation of Indian Chambers of Commerce and Industry (FICCI) states that the country, being the second largest consumer of the yellow metal after China, should frame effective gold policy.
The importers and big bullion traders in India are reported to be holding on to their gold stocks in anticipation of higher premiums on account of rumors that the government may introduce fresh curbs on gold imports.
Gold prices did not do much of anything on Monday to begin the new trading week. This likely comes as a bit of a disappointment to the gold bulls who were probably looking for some meaningful follow through after Friday's gains.