Friday, June 21, 2013

Will gold find bottom soon?

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.