Gold still remains under $1200 at the end of the week after the results of stress tests of 91 Banks in Europe, where only 7 banks failed to prove they would survive financial crisis. After the results, the faith of governments in their financial institutions was restored to some extent, in relation to the ongoing debt situation in Europe.

Traders who are losing in equities markets are now dumping precious metals and other safe haven assets to recover their losses. However gold which has been declining over the past couple of weeks doesn’t seem to make a potential gain in the near future. Analysts predict that gold price will further drop to US$ 1,165 by the end of August. Meanwhile other precious metals such as silver and platinum have gained and are at $18.14 and $1544 respectively.

Gold is currently at $1,186.4 and it is expected that when market will open after 48 hrs, the price of gold will fall $3 and will reach around $1,183. Gold prices are falling due to the last week’s affect on consumer price index (CPI) which declined about 0.1% to restrain inflation fears and the situation will not improve unless the worsening fiscal situation in Europe and the economic recovery in US is firmly dealt with.

Gold has witnessed some serious decline this month amid tight economic conditions in States. Gold is currently at $1,176.31 which dropped from $2,157.09, a sharp and unexpected fall. The economic situation has made it easy for investors to invest and make enormous profits from Foreign Exchange market and Stock Market. Euro has recently increased and economists believe that it will continue to rise till the end of September allowing investors to earn 22% profits on investments and therefore very few investments are being done in bullion and gold certificates.

The reason for fall of gold is due to precious metal’s slim demand however Gold miners are positive about the market in Future. Silver have also slipped to 0.8% in single day. The gold prediction in July and August looks bearish as investment opportunities in equities and trade have captured the market. The gold’s drop to eight-week low have already effected many countries regarding economic situation and other gold-backed investment portfolios. Analysts predict that after a short-fall in trade of Gold in the month of July, gold will rise to 11%.

[Source: Kitco]

Price of gold have been fluctuating since the last month as gold demand is sought in the market of China and Australia. The government of China is urging its people through television ads to buy bullion as safest investments. The strategy behind China’s policy is to let it’s people have secured and most profitable investments for future. Similarly, business groups and middle-class people in Australia are now shifting their investments and security bonds in to gold because gold provides hedge against currencies and investments.

The gold was traded lower in New York (Dow) but this trading have not stopped the precious metal to maintain it’s strength as analysts believe that as soon as the market will reopen, the gold prices will rise. The world stock markets are seen in doldrums but investors are not ready to switch to safe heaven. The gold demand in India also slightly rose and the banks of Myanmar were noticed purchasing bullion. “The drop in price of gold left fewer people attractive towards gold”, said Bob Hopkins, senior market strategist serving for Links-Waldock, Chicago. Analysts believe that the drop is just part of fluctuation and the gold price forecast is seen as inclining. This is the time to sell gold coins, gold certificates, bullion or gold jewelry or what ever form of gold could be sold because sooner the stock markets such as NYSE, FTSE, Nikkie etc. will recover and gold prices will drop down rapidly. The investors might move towards gold but it is not advisable to leave the stock markets and enter bullion. The right investors are now selling gold and buying shares rapidly. By the end of this year, the gold prices will rise again because a crash in stock markets is expected due to economic downturn in European countries.

The recent declining stock and forex markets have increased the gold price. The gold price trend as seen by senior analysts will continue to increase in the month of July and August. Analysts predicted that gold will reach $1261 giving it a 2.2% increase this month. The gold selling have been witnessed around the world in large quantity. Gold in India have seen heavy selling specially gold jewelry which is in demand. The market has yet to be saturated and investors are not interested in gold certificates or bullion because the US and UK stock markets will show progress by the end of July. Gold prices in August will be higher enough for gold investors to sell there gold certificates or bullion and make enormous profit.

Oil prices will also rise this month making energy sector in stock markets more attractive to investors. Gold and Oil is therefore the leading investment tool for players. Gold investments are safest because Gold is subject to market risk but many of the risks associated with gold prices are very different from the risks associated with other assets. There are now investments better than gold but to invest in precious metal means concrete investments. It is also known as hard cash because buyers of shares are comparatively harder to find then the buyers of gold certificates of bullion.

People generally consider Gold as the most safest, secured and highly profitable investments. It is a fact that Gold is very profitable but that is just not the limit. There are investments better than gold which can return more profit overnight or in longer term.

Since gold is now very expensive, currently standing at $1,222.91 which is not affordable for middle class investors or newbies. The extremes at which gold goes now is a 1.9% change.

Investment better than gold is no other than the sister of precious metal; “Silver”

Silver has this tendency of fluctuation and the reason behind is that the silver is not mined or manufactured any more. It is in very limited quantity around the world and no new silver is being discovered which makes it the real precious metal. Silver is used in many electronics and other devices and now the market of silver has risen rapidly which forecasts extreme demand of this metal in the coming time.

Silver moved from $17.42 to $18.40, a rise of $.98/oz., or 5.6% increase which is itself a major investment as compared to gold investments which only returned 1.9%. Financial analysts forecast that the silver will soon be an extremely rare metal and those who will have it would earn profits exceeding 30-35%.

Gold has shown increase as the month of June started and is likely to increase for next 15 days. Analysts predicted that gold will reach $1256 giving it a 2.9% increase but will decline for correction by the end of this month. The decline is considered to be a 1.6% variation and the investors are known to make maximum profit out of this gold price trend. The gold market will be back to peaking prices in the month of July and August as investors predict jewelry trade increase in India. The market has yet to be saturated and investors are not interested in gold certificates or bullion because the US and UK stock markets are likely to show progress this month.

The stock markets are predicted to be inclining at the end of this month which shows stock players have to wait and delay selling/purchasing.  The stocks recovery will throw gold back to 1.6% low making it less attractive for investors. The time is now feasible to invest in stocks rather than gold because gold will only give 5% profit in short term whereas stock market will allow nearly 9% to 11% profit in short term. Oil prices are also on the doldrums but investors are not clear whether to invest in energy shares or not because declining prices and a downward trend means slow or no profit in energy sector of stock markets.

Gold is on the moribund due to stock markets and forex decline. Usually investments in gold is sought when the downfall of economy occurs but this time investors are very confident that the declining stock market and forex will rise to new extents. The news has it as the analysts are busy figuring out what went wrong this time with the stocks when DJI and FTSE declined. The major move to restore gold prices before Devali (an Indian festival) will take place sooner. Gold investors are therefore advised not to sell gold at the moment. The right time to sell gold will be 2 days before devali. Keeping gold after devali is not feasible because that will be the time of buying it.

Investments in gold would not be feasible till august as gold price will not fluctuate (except devali days) hence making it less possible for investors. It is advised to invest in stock market right now which is the right time to buy. Major shares in pharma, auto industry and consumable goods would be beneficial. Since the stock markets won’t recover till the end of May, it is advisable to make an investment strategy before the end of month.

Gold prices are likely to go down after stocks and forex recover and proceeds to new extents. Many gold investors are now shifting back to stock market. But those lucky gold investors who would still want to stick to gold investments, good news for you as the time to earn mega profit is just ahead. Remember to sell two days before Devali.

The month of May 2010 is tremendous for gold investors as gold price tends to rise from here now on to new extents. Since forex is on the doldrums and the sadness is not likely to recover in the near future, the gold will rise extensively as investors are likely to switch back to gold. The gold trade world-wide has increased because of Indian buyers. The major investment is not gold jewelry anymore, but is now treated as the only solid asset required by middle-class investors as well as foreign central banks.

After the recovery of stock markets around the globe, the investment scenarios has boosted up due to friendly market conditions and attractive investment opportunities. Gold market has proved itself as one of the best investment options available to the investors. Those people who generally invest in stock market lose the most because the stock market forecasts and media reports are based on assumptions and not real-time statistics. This causes a lot of problems for the small scale investors who not knowingly invests blindly in one place. A better option now is to start selling forex in your possession and wait for 2 months max before you can purchase euros, pounds or dollars again. The best way is to purchase forex online and invest in the market. On the other hand, stock market is doing tremendously well.

Gold investments are always there to empower your asset value. Your shares can fall, your forex may devalue, but the gold price remains stable throughout times which makes it the best investment option for the upcoming months. The gold rate is likely to exceed from $1169 to $1220 in the next two months.

Gold forecast for the month of April 2010 is slightly bearish than the previous month as dollar has gained some stability in the world market (for details “dollar rises against euro”) but this stability of dollar is temporary as U.S. economy has yet to come out of recession clouds. The yellow metal had made major strides during the recession period due to panic buying by investors.

Since the recovery of shares, forex and investment market is expected, investors are likely to pull out their money from gold investments and put it in equity and other investment options. This strategy of investors may impact the gold prices and the yellow metals may not make big strides in the coming months probably the month of April and May as predicted by our financial analysts. In fact, gold is a lover of tragedies and whenever there is an adversity gold prices gain because people tend to buy gold during crisis times.

A long term investment in gold is always feasible because gold prices tend to incline against paperback economies. Investors should not put all their eggs in one basket, instead, they should try to keep some investments in gold and invest other in equity and forex which will more likely return 14% to 16% profit. The monthly gold forecast and gold outlook are universal.

India is the world’s largest gold-consuming nation. The share of gold in international market is 1.5X that of the U.S. although its GDP is only one-twentieth the size of the U.S. GDP. With its soaring rate of gold consumption, India accounts for 18% of the annual worldwide gold demand, while its share of global GDP on nominal dollar GDP is only 1.6%.

India is experiencing an 80% growth in gold investment following a relaxed trade and market limitations. The gold increased 242 per cent between March 1999 and March 2010 which is equivalent of an average annual return of 13.1 per cent and it also outpaced inflation which has increased by 30 per cent during the decade or by an average 2.7 per cent a year. Monetary authorities in India are not tremendously positive about the outlook of U.S. dollar thus their hedge against Dollar will help to set the stage for an alternative reserve currency/asset, an offer broadcasted by countries like China, France and Russia.

Despite the slump in the housing market in the past two years, property has produced the second highest return after Gold keeping PSU and BSE on third & forth respectively.