| Gold prices remain under selling pressure. Receding U.S. inflation could continue in 2015. As the dollar strengthens, and disinflation begins, expect gold to sell-off further. The price of gold could continue to decline as inflation expectations fall, alongside a stronger dollar and interest rate hike expectations. SPDR Gold Shares is down 14% since March.
The initial fear is that gold could continue to decline as inflation pressures remain subdued, with the dollar rising, and interest rate hikes taking place. On Friday, Minneapolis Federal Reserve Bank President Narayana Kocherlakota stated that he feared a premature rise in interest rates, prior to inflation growth, could do real damage to the economy...............................................Full Article: Source
|