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GOLD On An Ongoing Downward Trend

Today gold touched the $1337/ounce low, very close to the local low at $1321/ounce. The perspective for the precious metal is bearish, showing the increased appetite for risk of the investors. Forecasts are dwindling and it seems that gold lost for the moment its status of safe heaven. Goldman Sachs negatively review its outlook down to $1545/ounce in 2013 (previously suggesting the $1610/ounce level).

If last month the forecasted low of $1350/ounce was touched, this month we see the price in the same area. Is there a change to see it stalled even in 2014? Economists are saying yes, but we better let the market decides. If it were to follow the normal logic, we should carefully observe the evolution of the American dollar. Knowing its indirect relationship with gold, when U.S. dollar increases in value, gold decreases and vice-versa. However, this year we are witnessing gold acting after new rules which are set by the general weakening of the economies and the bold saving measures of central banks.

GOLD On An Ongoing Downward Trend by