Globonomics!

Consulting|Technology|International business

Price of oil is hitting $100 per barrel / Gold prices climbing

with 2 comments

http://goldprice.in/

Gold prices have really hit the roof at Rs. 31500 per ounce gold.

Oil is steadily climbing towards the pyscological figure of $100 per barrel and will probably exceed it.

Will analyze this in detail shortly. Also, will come up with a detailed assessment of the 123 agreement on nuclear cooperation between the US and India with the economics of nuclear energy in India. India has huge energy requirements/a vast untapped market (a blue ocean) and the US wants a piece of this billion dollar market.

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Written by Naveen Athresh

November 5, 2007 at 8:59 pm

2 Responses

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  1. This is only the side effect of the dollar depreciating and I think this has got nothing seriously to do with the price of gold or oil in INR.
    I think the price of gold still remains roughly the same as it was a few months ago.

    Nagendra HK

    Nagendra HK

    November 6, 2007 at 5:56 pm

  2. Nagendra,

    Please don’t get me wrong but I would like to clarify a couple of points: Its really not got much to the INR at all – as you rightly say.

    In fact, the INR is such a small player in the worlwide forex market that it is dwarfed by giants such as the Euro, the Pound Sterling and the USD. No one measures the gold standard vis-a-vis the INR.

    You are right that its more because the USD is depreciating against a whole load of currencies. Gold prices are affected largely by this and other macro economic factors such as the US subprime crisis etc., Asian demand for gold (as always during the festive season), worldwide central banks buying gold etc. But these are only ‘some’ of the factors leading to the surge in gold prices.

    I do not agree price of gold has remained the same as a few months ago. Just a couple of days back, I was speaking with Srinivas who says the prices have appreciated sharply in just the last 3 months.

    See the following article: http://www.thehindubusinessline.com/iw/2007/10/07/stories/2007100750540700.htm (summarizes the concept beautifully on many charts for analytical analysis).

    On a side note, I had pointed out an article on the Gold standard on one of my previous posts. You may refer to it: https://ecofin.wordpress.com/2006/10/18/gold-relationship-with-international-macro-economics/

    Oil prices is a completely seperate discussion thread. I just combined both on one post so I could elaborate on them on my future posts.

    Cheers,
    Naveen

    Naveen Athresh

    November 6, 2007 at 9:33 pm


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