Citi bank says that gold prices can fall below $1000 this year. Some reports say that Soros and other non traditional large investors have invested in gold. Investors are now confused. Gold will fall or continue to fall for the rest of the year, if the Federal Reserve raises interest rates or gives indication that interest rates will be raised every alternate month for the rest of the year. Gold is dependent of Federal Reserve manipulation. Gold will rise only on days when American interest rate factor takes a back seat. Key economists like Rajan (India’s central bank chief) are warning of spillover effects of being over dependent on monetary policy for economic growth and divergent fiscal policies by central banks. There are more reasons for being invested in gold.
This post was published at GoldSeek on 24 May 2016.
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