As the dollar falls, gold rises and savvy investors are profiting.
Gold prices are expected to rise next week, according to participants in Kitco News’ Gold Survey.
Survey participants who see higher prices said gold was caught up in the mass move to sell all assets and that the cheaper prices will be a lure to bargain hunters. The break in price from last week’s futures settlement of $1,814.70 was too heavy.
“The sell off is overdone. I expect back and forth for the next few weeks, but a bounce is in order now. The market had gone too far too fast, and was disappointed by Uncle Ben’s new ‘twist’ program, but the fundamentals of destruction of fiat currencies remain,” said Adrian Day, chairman and chief executive officer of Adrian Day Asset Management.
In fact, today’s gold price is a culmination of the dollar’s decline for several reasons including the U.S. housing market’s collapse.
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