Little enthusiasm for precious metals

In 2016, gold returned nearly 12 per cent in rupee terms and eight per cent in dollar terms

The year 2016 again disappointed gold investors, with most of the returns in the initial three quarters getting washed away in the past two months. While the year has still ended with good returns after three years of losses, there is little enthusiasm going into 2017. Rising interest rates in the US, leading to a stronger dollar and, falling demand in two major countries — India and China — due to measures by their respective governments, are key to why gold might not do well. Silver did better than gold in 2016 due to a sentimental recovery in base metals