Gold Falls Below $1,200 to 34-Month Low on U.S. Economy – Bloomberg 06-27-13

Salient to Investors:

Donald Selkin at National Securities said when the market gets into a trend, people want to follow it, and now we’re in a severe downtrend, so the psychology is terrible, and if any of the big holders that are still in the SPDR Gold Trust start are forced to sell, it could be big a wild card. Selkin said gold may fall to as low as $800 in panic selling – which would be the cheapest since December 2008.

Credit Suisse said gold fell into a bear market in April, and the decline has shattered the confidence of investors betting on an extended rally. Morgan Stanley and Goldman Sachs cut price forecasts.

Frank McGhee said nobody wants to own gold anymore, and we are getting a continuous grind down with heavy liquidation.

Michael Smith at T&K Futures & Options said supply side concerns in South Africa remain, while strong US economic data is providing support to precious metals that have industrial use.

Read the full article at  http://www.bloomberg.com/news/2013-06-27/gold-rebounds-with-silver-from-lowest-levels-since-august-2010.html

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