29.06.2015 - Gold will fall to $800 by end-2016
The sad truth is that gold is trapped in a vicious bear market. Gold prices have fallen from $1,930 in September 2011 to barely $1,175 now, a time during which the US stock market has almost doubled. Gold was unable to even hold $1,200 an ounce when rumors of a Troika-Greece debt bust mesmerised the European stock markets. It is tough to be a goldbug, even in the cloistered banking counting rooms of Credit Suisse and UBS. True believers (and their poor clients!) in Dubai have been gutted by gold linked “structured notes”. There are myriad factors that could cause gold prices to fall to $800 an ounce in the next two years. US economic momentum and the robust payrolls data makes a hawkish Federal Reserve interest rate cycle inevitable. This means the dollar will continue its rampage against the euro, yen, emerging markets currencies and crude oil. A surge in the US Dollar Index, up almost 20 per cent since last June, is the kiss of death for gold. ..............................................Full Article: Source
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