So does this mark the final leg down and the end of the pain for many gold investors? “Someday, at some point, it will happen,” said Mike McGlone, commodity strategist for Bloomberg Intelligence in an interview on Friday.
“Have we reached the point of maximum loss of faith? We may be pretty close,” McGlone added. Gold prices are down and hit a nearly 1.5-year low as they fell below key chart support at $1,200.00. Silver futures prices dropped to a more-than-two-year low overnight.
A surging U.S. dollar index is trumping currency market turmoil to drive the precious metals markets lower. December gold futures were last down $11.90 an ounce at $1,207.10. September Comex silver was last down $0.13 at $15.165 an ounce.
"If the history of compressed gold prices is a guide, the dollar should be peaking, with the potential for higher gold prices far outweighing downside risks.
It's been about two decades since gold sustained a narrower 24-month range,” McGlone said.
- Source, Kitco News
