Dropping Below $1,000 on Dollar
by Debarati Roy July 22, 2015 — 12:05 AM CESTUpdated on July 22, 2015 — 1:00 PM CEST
Goldman Sachs Group Inc.’s Jeffrey Currie says the worst is yet to come for gold and that prices could fall below $1,000 an ounce for the first time since 2009.
“With the more positive outlook on the dollar, and with debasement risk starting to fade, the demand to use gold as a diversifying asset against the U.S. dollar becomes less and less important,” said Currie, who told investors to sell in 2013 before the metal’s biggest collapse in three decades.
Prices this week slumped to the lowest since 2010. The rout is deepening amid mounting speculation that U.S. interest rates will climb this year, curbing the appeal of bullion because it doesn’t pay interest like competing assets. At the same time, China bought less of the metal than analysts were expecting, and the dollar keeps getting stronger..
Goldman Sachs Group Inc.’s Jeffrey Currie says the worst is yet to come for gold and that prices could fall below $1,000 an ounce for the first time since 2009.
“With the more positive outlook on the dollar, and with debasement risk starting to fade, the demand to use gold as a diversifying asset against the U.S. dollar becomes less and less important,” said Currie, who told investors to sell in 2013 before the metal’s biggest collapse in three decades.
Prices this week slumped to the lowest since 2010. The rout is deepening amid mounting speculation that U.S. interest rates will climb this year, curbing the appeal of bullion because it doesn’t pay interest like competing assets. At the same time, China bought less of the metal than analysts were expecting, and the dollar keeps getting stronger..
Link: http://www.bloomberg.com/news/articles/2015-07-21/goldman-s-currie-sees-gold-dropping-below-1-000-as-rout-deepens
