Is Gold Set to Fall Much Lower?
March 1, 2015 [...]
In January, gold has surpassed the 1,300 $ level, following Mario Draghi's announcement of the ECB easing programme. But the spike was short-lived and gold fell below 1,200 $ again in late February.
To some, the "ignition" in January seemed like the beginning of a new gold bull market. After all, monetary easing programmes are fuel to gold's price.
Currently, gold is trading around the strong 1,200 $ support level.
The weaker euro and the emergence of further crises in Greece and the eurozone will almost certainly empower the dollar. Thus, gold measured in US dollar terms will weaken.
The next strongest level below 1,200 $ is somewhere around 1,050 $ - most experts agree.
Louise Yamada's 600 $ gold price may sound grim, but here's a CNBC interview from last June reflects a strongly bearish opinion. Indeed, since then - gold has kept falling, even below 1,200 $.
2015 is likely to be yet a bearish year for gold. Despite the ECB monetary easing's impact and despite the Swiss franc cap issue.
The US dollar has become a "safe haven currency" for those escaping from devaluing currencies: rouble, yen, euro, argentine peso etc.
Stay tuned to Prime Values for further updates, news and analyses regarding precious metals and the global economy.
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