22 Dec 2014
Gold: Seeds of next bust already sown - Sunshine Profits
FXStreet (Guatemala) - Arkadiusz Sieroń, an economist at Sunshine Profits, commented around the outlook for the price of gold in relation to downside economic global risks.
Key Quotes:
“As data on the U.S. economy looks positive, at least compared to Japan and Europe, the greenback will be gaining, which could easily translate into lower prices of the yellow metal”.
“However, the seeds of the next bust have been already sown, so investors should wait and watch for downside risks, especially the slow global economic growth (look at data on China) and the decelerating pace of money supply expansion in many countries. Both factors have actually busted the oil boom”.
“The stock market may be next, which would increase gold prices”.
Key Quotes:
“As data on the U.S. economy looks positive, at least compared to Japan and Europe, the greenback will be gaining, which could easily translate into lower prices of the yellow metal”.
“However, the seeds of the next bust have been already sown, so investors should wait and watch for downside risks, especially the slow global economic growth (look at data on China) and the decelerating pace of money supply expansion in many countries. Both factors have actually busted the oil boom”.
“The stock market may be next, which would increase gold prices”.