Gold plunge could be as low as $880 an ounce
Other analysts said the gold price could bounce back up just as quickly as it fell and critical of traders and investors who saw the gold price as a commodity that would only go up, expecting it to hit $2,000.
The Gold plunge is likely to last for some time as investors are moving away from the precious metals to equities after they were hit further Monday.
Analysts said the speed of the fall has surprised market watchers, with gold trading below $1,450 an ounce on Monday and 24 per cent below its record highs of 2011, putting it in bear territory.
Some analysts predicts the price will fall by at least one third to $1,000 an ounce and as low as $880.
They attributed gold's plunge to a scenario in which loose monetary policy of central banks around the globe and low interest rates and a weak US currency was coming to an end.
During a 12-year run of gains until this year, gold had been an investment for all seasons: when there was economic growth it was a hedge against inflation, when growth was going backwards it was a safe haven.
The explanations and rumors for why the price of gold is falling ranged from positive views about the US economy sparking an end to monetary stimulus to consortium of bullion or central banks artificially pushing the price down and selling in large volumes to China.
However, other analysts said the gold price could bounce back up just as quickly as it fell and critical of traders and investors who saw the gold price as a commodity that would only go up, expecting it to hit $2,000.
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