That can make gold market collapse
Global gold market is experiencing an oversupply. Gold production in India heightened in recent days after both the presidential candidates promised to cut budget deficit and bring sanity in fiscal management. It was also a sign of trouble for the Gold market.
India's gold production increased 12.26 per cent to 3,742.7 kg during April-August 2004 as against 3,334 kg in the corresponding year-ago period.
Out of the total gold produced, Hutti Gold Mines Ltd produced 1,639.7 kg yellow metal and Hindalco, which processes gold from the ore stage, recorded 2,103 kg production during the period in question, an official statement said.
The Gold bulls are long the positions and get into margin calls. That can make gold market collapse. The Gold market is in an upturn for the last three years. It seems like that time is right for a sizable correction at the least. According to sources, Gold bull to bear ratio reached a twenty year peak of 76%. That is another sign of trouble in the Gold market, India Daily reports.