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

Gold's Price to Fall Further this Autumn

Gold price started falling since mid-March 2014 and after a short-lived spike in June, the coin flipped and the price took a downward turn.

Here's how gold's chart looks, if we take a look at the price since early October 2012...

Gold's price between 2012-2014

Gold has been falling since early October 2012

Although, generally we speak of a "crash" since April 2013, gold's price really started seriously diminishing in early October 2012.

Appetite for the metal has been reduced and the subsequent sell-offs have discouraged investors to invest in substantial amounts.
If investor sentiment continue to be weak, then gold will not recover early.

October is traditionally a bearish period.
Reason why next month may bring even lower gold prices.

Currently, we're hovering slightly above 1,200 $ - which is a strong support level for gold. But let's not forget, this level has already been pierced in late-December 2013, when gold had sunk to 1,193.60 $.

If gold falls to the 1,100's, then it would be a good buy right now - but the atmosphere will remain bearish for the medium term.

The FOMC is holding a meeting next week to discuss further monetary policies. And, it's likely that further tapering will be "on the table" - therefore a possibility for a stronger dollar, which will drag gold's price further down.

Kitco mentions HSBC's gold prediction, which speaks of the 1,150-1,350 $ interval for this year.

According to the Hong Kong Shanghai Banking Corporation, gold's average price will be at 1,292 $ per ounce.

In the longer-run, HSBC expects gold to average at 1,310 $ in 2015 and 1,345 $ in 2016.

Jewelry, coin and bar demands are down - according to the same bank, but in the long-run, the bullion demand is increasing in the emerging markets.

For now, we can expect gold to shrink further, below 1,200 $.

But, there is one particular phenomenon that might push up gold's price (in the long-run) and that's the Russia-West economic warfare.

comments powered by Disqus

Prime Values on FacebookPrime Values on Twitter

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