Thursday, June 27, 2013

Gold price hammered to $1,277, at 33-month low: Next stop, $1,000?

The gold rush is over, says the man who predicted the 2008 global collapse
By    Vicky Kapur

Published Thursday, June 20, 2013

Gold prices got hammered on Thursday, sinking to $1,277 per troy ounce by 11.30pm UAE time, having come under massive seling pressure amid a bearish global sentiment. Precious metal bulls got mauled badly today as gold tanked by as much as 6.5 per cent, or $89 per troy ounce during the session.

The yellow metal is now down by $414 an ounce, or over 24 per cent, since hitting a 2013 high of $1,692/oz on January 22. This means that investors that bought into the precious metal in January this year have lost almost a quarter of their capital, with analysts expecting further agony for the gold bull in the days to come.

Spot gold price is now at a 33-month low, with these levels not seen since September 21, 2010. Investors will also remember that gold made its famous all-time high of $1,923/oz in September 2011, which means that the precious metal has shed a massive 33.5 per cent, or a third of its value, in less than two years (21 months).

A myriad of factors, including a very real possibility of the US Federal Reserve curtailing the quantitative easing program in the near future, an overbearing tax on gold consumption in India (world's largest gold consumer), and a strong dollar are all being cited as the reasons behind gold’s recent plunge.