Gold forecast (Roubini) : Gold is likely to fall below $1,000 an ounce
Gold is likely to fall below $1,000 an ounce, nearly half the level it reached at its peak in 2011 according to Nouriel Roubini, the founder of Roubini Global Economics. And the man credited for calling the financial crisis believes one of the key factors that will drive prices lower is “extreme political conservatives, especially in the United States”
In a piece up at Project Syndicate, economist Nouriel Roubini says gold will fall to around $1,000 before the end of 2015.
He gives 6 reasons why.
1) Gold spikes during extreme crises. The crises are over.
2) Gold does well during periods when there’s a risk of high inflation. That clearly is no longer a big worry, given how much central banks have unsuccessfully tried to stoke even modest inflation.
3) Now with the economy recovering, nobody wants to be in rocks that don’t pay any dividends.
4) Real interest rates are rising. That kills gold.
5) Governments with debt issues are selling gold.
6) Gold was juiced by right-wing fanatics in the US. That boom is over..
