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Andreas Maag Bailey McCann, Opalesque New York:
Gold prices have fallen flat in recent weeks as the market shows signs of fatigue and investors choose the dollar over gold. In a recent Opalesque Radio interview with Andreas Maag, Head of Swiss Precious Metals Distribution at UBS Investment Bank, he noted that the price drop back to early 2012 levels is likely an indicator of both market fatigue and geopolitical uncertainty.
The current spot price for gold is hovering around $1,592-4 an ounce down from highs earlier this year. "This is a good time to buy," Maag says. "The market has corrected and prices are at levels where new money could enter the market."
Investors have recently been bearish, avoiding new allocations to precious metals as they wait to see the results of Wednesday's EU summit. According to Maag, many allocators are also comfortable with current allocations of 5-10% into gold and other metals as a protection against potential inflation.
Technical commentary from FXstreet.com shows that Gold is behaving more like a currency, with its moves tied to Euro/Dollar movements rather than as a separate asset class. Maag echoes this point, "if you look at the technical picture it is almost a depression in the market."
"Worst case scenario we see prices around 1480-1520, these are levels that are very close already...................... To view our full article Click here
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