The prices of bullion metals are expected to remain range bound in the near future just as they have been in the recent past. The tug of war between quantitative easing in the US and UK and austerity in EU and tighter monetary policies in emerging markets is maintaining the price of bullion metals within a very tight range.Talk of gold going up due to demand arising from India, once the marriage and festival season arrives, could be a reality. However, the main reason for the gold run up in the last couple of years has been excess liquidity, and the direction of the commodity, would largely be dependent on liquidity, These counteracting forces of low demand and excess liquidity are keeping the yellow metal range bound.
China is expected to buy gold from the international market in a covert manner to avoid attention and any adverse price movements. No major corrections in bullion metal prices are expected until some black swan event of a sovereign default and its domino effect materializes.