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Gold Can Drop to $1,600 an Ounce

2012-03-22

Yesterday, gold was subjected to some volatile trading, as aresult of which, the metal prices jumped from the bottom, at the proximity of 1641-1644, to the top - 1660-1662 dollars an ounce. In this situation, the euro/dollar dynamics had a strong influence, which has undergone sales first and subsequently, it showed the growth.

The jewelers continue striking in India, it is associated with the duty increase on imports of the precious metal from the part of the government. Chinese macroeconomic statistics continue disappointing the gold bulls, which significantly reduces the demand for it.

The IAFT analysts believe, that all these factors, as well as the U.S. dollar strengthening against the lack of prerequisites for carrying out the third round of quantitative easing from the part of the FRS, will continue to put pressure on the price of gold. As a result, the price of the precious metal can drop to $1,600 an ounce.

Gold Can Drop to $1,600 an Ounce
Author: Anthony Porter, IAFT Analyst

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