Precious metals are all set to surprise the economic markets. Gold and silver could surprise the investors to the upside today. Investors and market experts already built a set of expectations around these precious metals. And these metals are all set to fulfill those expectations. It would be a big mistake to ignore the price fluctuations in the economic market recently. However, changes are on their way in the month of September. It is also claimed by economists that Fed is unlikely to raise rates in September even if US jobs numbers are booming because of rising downward risks to the inflation outlook.
The physical markets which sell precious metals markets are quiet and traders are reporting about an expected growth in the flow of customers and gold and silver are likely to experience more investors and investments.
China is also likely to gain a boost in the economic growth with all the Asian countries. These countries claim that some macro fund observers are seeing a significant growth in the demands of precious metals. The Chinese authorities are managing the transition of the economy from industrial-based and export based to an economy which can turn up as consumer and service oriented economy. It is also true that the economy is growing at a slow pace but even a slight growth rate of five or six percent in the economy can mean a lot as it is a massive economic nation.
Overcapacity and destocking followed the slowdown in the last few years and it seemed to have weighed on apparent demand in China but, with capacity curtailments and with steps being taken to curb in obsolete capacity, restructuring is in progress and it seems that Beijing has a firmer hand on supply this time. Also in India, the demand and supply ratio is increasing if relied on industry experts. In nut-shell, the economy is certainly going to experience a boom in gold and silver, be it demand or be it supply.
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