Another one hundred dollar per ounce drop in gold! How much further can it fall? Well, it definitely cannot go to zero as it is not really a stock that can go bankrupt. However, it can and will probably continue falling for some time. I remember mentioning somewhere (hope on this blog) that my prediction for gold is one thousand dollars per ounce. I still keep to this position, but also have a more moderate one: gold my found its’ bottom around one thousand two hundred level. For this scenario to come true we need another 80 dollar fall in the commodity.
I think it is very realistic. The fall might even happen today (Friday) as Fridays are very volatile and unpredictable days in financial markets. S&P500 is already falling, so gold might join the trip down. Anyway, it is most logical for the security to rest a little and consolidate. Then, after a month and a half it may continue its’ downward trend. Or, it is also possible that the commodity has already found its’ long term bottom. I prefer waiting for another week and see whether settling down takes place or not.
I will not write for a few days, so hope you will be patient. See on Tuesday.