Gold may rebound on speculation
that the Federal Reserve (Fed)
will not increase the interest rates anytime soon, thus eroding the value of the dollar and boosting
the appeal of the precious metal
as an alternative investment. The slumping housing market and the falling PPI numbers
would prevent the Fed from raising
the rates. Further, the recent WGC demand trends indicate that the investment demand has moved up amid
speculators increasing their bets
on gold as the net long positions
increased by 9.5% in the week ended November 14.