Will Gold Fall becoz Crude is falling?

Well earlier Gold used to depend a lot on Local demand., and thus we had lower rates in lean season and Higher rates in Marriage Season. But the situation has changed completely. Indian demand is not the only criteria.
You will be shocked to know that last year the largest buyer of Gold was NOT India. Yes it was not India.
Believe it or not. It was the Middle East Countries combined. These Gulf countries have started investing in Gold as safe haven for their profits made from High Crude Prices to park in. Earlier the Gulf used to park their funds in US and other Western Countries. But now they have become smart and especially after 9/11 World Trade Centre Bombing, when the US froze their assets for some time, they have realised that their money is not safe anymore in US and started looking at alternative avenues.
That is why, you are seeing lot of Money poured by them in our Country through PE route.
And to further diversify their asset allocation, they have started buying and storing Gold aggresively. Gold Experts are of the opinion that Gold Reserves may last for 15 - 18 years or so at the maximum. And this reason is enough for people to store Gold and is one of the Biggest Bullish Factor for the Gold.
In fact, Gold Reserves are depleting fast. Last year's Gold production was lowest since 1937 and it will only get worse.
So, Gold , like Crude, will see dwindling supply and ever growing Demand.
So, I feel you are better off to stay invested in DSPML World Gold Fund or AIG World Gold Fund. If you have not yet invested, you sure are missing one of the Biggest Bull Runs on Gold.
Go and invest now.
Best of luck.