Precious metal investments: news, consultancy, trends, reports & more!
HomeMarket WatchHard AssetsInvestor's GuideDownloads

Gold to Dip Below 1,200 $?

Gold has reached an 7.5 month low in mid February, 2013. The shiny metal dipped even below the 1,600 $ level.

In 2012, Saxo Bank's predictions were talking about gold at 1,200 $ per ounce - they also said the US dollar will gain strength despite the Fed's monetary easing policy.

Gold indeed has disappointed in 2012, having reached far lower highs than previously anticipated. A vast number of gold experts and investment banks got slammed as their predicted 2,000 $ gold price wasn't even approached last year. Gold could barely hold 1,700 $ and now in mid February 2013, we're seeing a serious dip.

Investor and writer, Jim Rogers even affirmed that he's not buying any gold and a large number of news channels and newspapers have started talking about "the end of the gold bull run".

Prime Values has previously covered the likeliness of a gold price crash in 2013 or 2014.

Gold has indeed lost momentum, however some chart analysts are still optimistic about a possible uproar happening in very late February or March.

With the lack of severe negative US economy-related news and the possibility of lighter QE in the future, currently gold is not getting much boost to climb upward.

On February 22nd, it corrected slightly, touching 1,580 $ even. Kitco's Weekly Gold Survey experts are mostly bullish on gold for next week (February 25 - March 1).

Will gold fall to 1,200 $?

Certainly in order to climb very high, it would require more than just the "bargain hunting". Otherwise, a period of horizontal trading could occur again.

If no major events happen for gold to get a boost, it's likely that it will in fact head downwards. If so, then Saxo Bank's 1,200 $ predictions weren't even that "outragous" as Market Watch called them in this 2012 article.

March 19-20 meeting of the Federal Open Market Committee (FOMC) might bring us a surprise regarding quantitative easing. Some believe that monetary easing might become lighter. Check this article by Business Insider for very detailed information regarding that meeting and possible new measures by the Fed.

Furthermore: the euro crisis is deepening and we will most likely find out about "bigger plans" following the German elections, which hare due on September 22, 2013.

If the eurozone will contract or, if the euro currency will significantly weaken during 2013, then a stronger dollar will push gold prices down.

It's also recommend that you take a look at Prime Values' gold demand decline article. While countries were indeed buying more gold than before, small investors purchased less of it (it's the first and a substantial decline since 2003)

comments powered by Disqus

Prime Values on FacebookPrime Values on Twitter

about us    terms of use    privacy policy    disclaimer    partners    advertising    contact us