Dateline Mar 14, 2015: Gold could easily rebound to $1400/ounce according to an article by Paul LaMonica in CNN Money. Earlier this year, gold briefly topped $1300/ounce but since has dropped over 10%.
Why the drop: the dollar is strong. The price of gold tends to move inversely with the greenback. It rises when people are concerned about fiat currencies, especially the US dollar.
Why, then, will gold rise? The author cites several of reasons including the rise of the middle class in India and China and gold purchases by central banks. According to Michael Cuggino, manager of the Permanent Fund portfolio, “Over time gold prices will appreciate”.
For more information on gold as an investment, look here.
Read the full article here.