Gold’s woes continued Friday when its price slump hit a five-and-a-half year with analysts warning that the precious metal could plunge far faster than recently forecast and hit the $1,000 mark in just a few weeks.
Prices have come under pressure recently and are down around 5.4 percent in the last seven days. On Friday, spot gold hit a low of $1,077 an ounce and was trading down around $1,079.6 by mid-afternoon.
And analysts are seeing further pain for gold to come in the short-term.
“I think we see more of a downtrend particularly over the next couple of months ahead of the market speculation of a September rate hike in the U.S., so I think you can easily see prices over the next two months breaching below $1,000 round level,” David Wilson, director of metals research and strategy at Citi, told CNBC in a TV interview.
via CNBC
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
Alfonso Esparza
Latest posts by Alfonso Esparza (see all)
- Canadian Wholese Sales Drop Unexpectedly by 0.8% - 04/23/2018
- UK Exports to Switzerland, China and South Korea Grow - 04/23/2018
- Market Upgrades Possibility of 4 US Rate Hikes This Year - 04/23/2018