Gold slumped to a three-year low recently. In the short-term, the odds of a significant recovery look slim. Demand for paper gold assets, such as exchange-traded funds (ETFs) and futures, has waned. The US Federal Reserve's intention to ease up on money printing implies higher real' (inflation-adjusted) interest rates and a lower risk of inflation in future.
On top of this, the global economy gradually seems to be returning to normal, which reduces the appeal of an asset seen as a safe haven in hard times. And potential demand for gold in Asia has hit another short-term obstacle: India has cracked down on gold imports as part of a drive to lower its current-account deficit.
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