Gold to Sink 11% to 20%
Gold enthusiasts recently got a reprieve on the metal currency’s slide versus dollar strength. The emergence of Ebola in the United States caused some to question the protection of the dollar against global woes and to reconsider gold. However, Ebola fear is fading and the FOMC event today should remind investors of the Fed’s rate plans and reinvigorate the dollar. The SPDR Gold Trust (NYSE: GLD) has stabilized lately on what I see as market greed and hope. However, this event could push gold to break into new 52-week low territory, and I see the SPDR Gold Trust (NYSE: GLD) dropping a further 11% or more in 2014 from its current trade. Obviously, this statement is qualified on the assumption of no significant Ebola outbreak or terrorism in the U.S. See more about my view for gold here.
GLD Peers
|
YTD
|
TTM
|
SPDR Gold Trust (NYSE: GLD)
|
+1.7%
|
-9.0%
|
Market Vectors Gold Miners (NYSE: GDX)
|
-2.8%
|
-22.6%
|
Direxion Daily Gold Miners Bull 3X (NYSE: NUGT)
|
-29.4%
|
-62.8%
|
iShares Silver Trust (NYSE: SLV)
|
-11.9%
|
-23.9%
|
Labels: GLD, Gold, Gold-2014, INDUSTRY-Gold
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