Gold price is linked with the economy of the western countries and the USA.
Nitin Vyakaranam,founder and chief executive officer,ArthaYantra, an integrated online personal finance company,believes that the future of gold depends on the performance of these economies.
He writes:”When compared to the global markets, Indian markets experienced higher growth rates in gold prices.The Indian rupee, which used trade around 43 per dollar, is now valued at around 54 per dollar. The global economic conditions of the past decade along with the weakness of the rupee acted in favor of higher gold prices during the last decade in India.
The economic indicators in the coming quarter will define the direction of gold in the future. If the US economy continues its good run, you can expect a further decline in gold prices in 2013.”