Weekly Commentary - Accelerating Drop in Gold Price
However, it is too early to say gold price is going to free fall in short term. Since the end of September 2011, gold price fluctuated between USD1,550 and USD1,800. Market sentiment was over-bullish over last 2 months and investors just ignored some uncertainties in the market, such as negotiation over U.S. budget deficit which may result in automatic spending cut in March and the downside risk of European economic. With most of the equity markets turn weaker from over-brought level recently and market sentiment is swinging to “risk-off side”, physical gold may re-catch attentions of investors and is likely to see a rebound in short-term from the bottom of the price-range over last one and a half year.
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