| Gold prices rallied $10 per ounce in London trade Tuesday, hitting $1156 – a new 4.5-year low when first reached last week – as world stock markets ticked higher but crude oil fell again. "The gold price has continued to trend lower," says a new note from US investment bank Goldman Sachs, "on the back of the strong US Dollar, rising real interest rates and better-than-expected US economic data."
Looking 12 months ahead, "we should see prices stabilise" says the London market-making bank. But gold prices could first fall to $800 per ounce, reckons Michael Sheehan, a portfolio manager at Redkite Capital, as disappointment grows with gold as a "diversifier" he told the London Bullion Market Association's 2014 conference in Lima, Peru...............................................Full Article: Source
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