There are a few factors that are converging in Gold Markets right now. U.S. economic data, a strong dollar and a Fed rate hike are weighing on the yellow metal.
1-However, no one seems to be talking about the proposed changes in Sharia Law allowing millions of Muslims to own the physical version of Gold.
2-How about the new Shanghai Gold exchange, unlike the London exchange the Shanghai exchange is based on current Gold inventories in existence and does not allow for over allotments in the form of paper Gold.
3-Then there is the currency demonetization happening in India right now!
Could we see an increase in demand after the rate hike is in the rear view mirror? Well, that’s for you to decide.
Source- BroadStreetAlerts