I have no views, and I have no position in gold. I do not understand bullion or most of the commodities. This is a caveat.

However, I know one thing – price is determined by demand and supply. This is universally true. And has always been true.

Now one story I keep hearing is that the goldsmiths of Kerala are not happy because people are not buying jewellery – obviously. Income levels have not gone up enough to justify spending on gold. So some of the old gold is recycled or worse it is even sold for buying some luxury product – like a trip to Singapore. This is not good news for the jeweller.

When the Rupee weakens against the dollar, gold prices look more expensive in India than abroad – again obviously.

Will the Indian gold buyer stay away from gold during Dussera and Diwali? doubtful. I also heard of some small investors who have sold gold / gold etf for paying for covering their share-market losses….

With all this happening, life looks difficult for a gold trader…..who has to take a daily call based on charts. He/she has no clue on global supply – demand relationship. Tough life.