As it is a highly liquid asset, central banks can afford to look past its short-term volatility to longer-run average returns.
'Investors hate uncertainty and the demonetisation move certainly creates that.'
'It is less dependent on imported capital.'
India Ratings principal economist Sunil Kumar Sinha said the Brexit is a mixed bag for the country.
Given Indian corporates's high indebtedness, new credit will be used for servicing loans rather than building factories. This is setting us up for more companies on life support and more zombie banks, warns Rahul Jacob.
'India is possibly the most fiscally constrained market in the region.'
Global investors are fast losing appetite for equities, as deflation seems more of a reality. With commodity prices collapsing, few safe havens are left for investors, with many of the BRICS(Brazil, Russia, India, China and South Africa) losing their charm.
If Chinese growth starts falling, sharply or otherwise, the risk on trade might reverse.
Global liquidity expected to continue amid ECB stimulus
The broader markets were marginally higher with mid-caps and small-caps gaining 0.1-0.4 per cent on the BSE.
The improving earnings and economic outlook has titled the scales back in favour of Indian equities this year, reports Pavan Burugula.
It is by now quite clear that in all likelihood the US Federal Reserve will hike interest rates in its next meeting in mid-December.
'The assumed linear correlation between forced lower yields, higher bank borrowing from the RBI, higher lending, and higher growth involves leaps of faith, each a step on the quicksand of false beliefs,' warns Debashis Basu.
Total holdings of the top eight gold ETFs have risen by 3.8 million ounces so far this year
ICICI Bank, HDFC Bank, IndusInd Bank down between 0.2%-1.4% each.
Broader markets are outperforming the benchmark indices- BSE Midcap and Smallcap indices are up 0.8%-1%.
It is surprising that central bankers around the world have cautioned the US Federal Reserve against raising rates.
Index heavyweight RIL surged 3% to end above Rs 1,000 mark while IT majors were also the top gainers.
India, Asia's third-largest economy, is likely to grow 5.3 per cent in 2013, the OECD said, lower than the November forecast of 5.9 per cent.
'A positive oil shock has a detrimental effect on growth and activity.'
Silver, platinum and palladium all declined.
Macro and micro environment are becoming more challenging.
Gold is often favoured as a hedge against economic and financial uncertainty
On Friday, the euro weakened to a near 14-month-low against the dollar, after the European Central Bank announced a fresh round of stimulus and promised more if required.
Traders are waiting for the earnings season to kick off.
Even if the central bank doesn't pull the trigger later, it is still expected to by the end of the year.
In India we have to be careful not to copy any level of dependence on the financial sector and infatuation with the get-rich-quick syndrome, says Jaimini Bhagwati.
Reserve Bank of India Governor Shaktikanta Das tells Anup Roy, Raghu Mohan and Niraj Bhatt that it is time for banks to lower interest rates and start lending to cash-starved finance companies after due credit appraisal and proper risk assessment.
A falling rupee and lower foreign buying in equities are signals investors should watch out for, says Devangshu Datta
The dollar gained strength with the emergence of the US as the only developed economy showing signs of recovery.
ICICI Bank and SBI were among the top Sensex gainers along with FMCG majors ITC and HUL.
Markets could slide again owing to conditions in Europe and the US.
Gold is seen as a preferred asset for all types of investors, even central banks.
From the peak of $3.67 trillion in January, India's market cap has eroded by $676 billion amid rising bond yields and a record-breaking sell-off by overseas investors.
'If one believes that the Indian stock market will go up 70 per cent every year for the next 10 years, I wish you good luck!'
The market breadth, indicating the overall health of the market, was positive
In the broader market, the BSE Midcap was down 0.2%, while BSE Smallcap fell 0.1%.
The Indian stock market had rallied through the first fortnight of October but it gave back the bulk of its gains in the second half.
Not only is gold a hedge against currency depreciation, rising crude prices and uncertainty, it is up 7 per cent (in dollar terms) in the past 12 months, says Devangshu Datta.
Financials were among the top losers along with Sun Pharma and index heavyweight Reliance Industries
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