Making some sense, the gold price will drop some more but not as much as the first drop. You may consider the event much like an earthquake aftershock. Some of the new investors will wait for the price second price drop, which presumably & precariously starts soon while other new investors will wait for the gold price to recover to the $900 level before buying gold. Underlying Notion: My 2 Cents on the Current Gold Price
It makes sense to anticipate that until the new investors do not enter the gold market then the price of gold will continue its second plunge downwards until the new investors see the opportunity in buying cheap gold. New gold investors are expected because of the loom of economic recession in the US, Europe, & Japan. Investors need insurance; even with buying gold. Gold Price Had Gone Down as Expected.
It makes sense to anticipate that until the new investors do not enter the gold market then the price of gold will continue its second plunge downwards until the new investors see the opportunity in buying cheap gold. New gold investors are expected because of the loom of economic recession in the US, Europe, & Japan. Investors need insurance; even with buying gold. Gold Price Had Gone Down as Expected.
2 comments:
Here in India gold prices keeps on increasing.. But here it mainly depends upon the American $ value, so no way for it to get reduced. What's your country situation?
The gold in Malaysia follows the price of international gold. Recently, the gold price plummeted from about $900 to the $700 level.
It can go on according to the trend & as you mentioned, related to the US$. We will see how the US economy performs in the coming months. Also recently Bernanke has stopped lowering interest rates.
So, the US economy will be on its way to economic recovery albeit slowly. Myself being blunt & without much facts, I reckon gold price will accordingly stabilize (plenty of annoying whipsaws) or reduce in price & then as usual, slowly increase again.
Thanks for stopping by my blog, Shiva.
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