What is relation between sensex & gold prices? or isn't there any?

[Sumeet Kohli]

I personally feel that there is no Scientific Corelation between Gold Prices and Sensex. However, it is normally seen that when the economy is on upswing both the marlet are upwards, and when the economy is on downtrend, both the market are on downside. Gold prices are also affected due to seasonal spurt in demand of gold in India during occasions. what are your views?

[Killol Shah]

Can anyone give reasons for todays massive fall of market?

See it is difficult to understand the movement of Sensex.

 

It is better we do not relate 2 different assets.

[Vivek Gutka]

Hello,

 

Todays’ fall in the market was steep in terms of % fall, however the volumes in the market were not that high to suggest a fairly aggressive fall in the making. Buy the dips with strict stop losses is the strategy to be adopted in this market right now. There may be running corrections in the markets buy nothing to suggest a change in trend. 5840 to 5900 looks to be a good support area to add positions.

 

Gold seems to have peaked for a long time.

[kohlir...@gmail.com]

Hi Vivek, good points but I disagree with Kilol, infact I find it all the more interesting to compare such different asset classes...thats what we have learnt ìn our Stats and CPFA syllabus when we study the correllation between two variàbles and how do they behave vis-a-vis each other. Imagine a fund manager doing a day to day wise study on gold and sensex and comes out with specific findings on correlation coefficient and behavioral patterns of each then evèn though we may not be able to predict the market bit will You not be able to "manage" funds more efficiently?...food for thought! Please correct me if I'm wrong...

Regards,
Sumeet

Sent on my BlackBerry® from Vodafone

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From: "Vivek Gutka" <vkg...@gmail.com>

Sender: cpfa-...@googlegroups.com

Date: Mon, 13 May 2013 20:14:23 +0530

To: <cpfa-...@googlegroups.com>

Subject: RE: What is relation between sensex & gold prices? or isn't there any?