Gold tends to bottom out and rally sharply during periods of successive interest rate cuts. Exchange-traded fund demand, absent for two years due to rising real yields, higher inflation, and increased carry costs, could witness a resurgence, providing an additional boost to gold prices
Tonight all eyes will be on cues from US market. Ben Bernanke will speak tonight and that is the event which all global market participants have been waiting for, says Udayan Mukherjee.
Sandeep Bhatia said the current flow of liquidity from the US will tend to slow down in the next two years although it will be in abundance in Europe and Japan; and India can enjoy some of the benevolence coming from Japan.