Gold price may slide to $900/oz
GFMS chief still says $1,000 is possible
Tom Stundza -- Purchasing, 7/8/2009 2:28:34 PM
Gold continues to hover around $928/troy ounce so far this month, down from the $945 London average in June and just under the $929 mark of May, prompting one trader to tell Platts.com that trade of the yellow metal was "dull as old dish water."
Looking ahead, Philip Klapwijk, chairman of GFMS, the London-based metals consultancy, says the metal's price could decline below $900/oz during this summer with supply increasing and demand declining sharply.
At a press conference in Beijing today, he says the ongoing price pull-back from the February peak of $943 "is largely just the market's reaction to jewelry demand crumbling." However, a Wall Street Journal report says gold prices notably hit a wall in June because investors prefer the dollar as the safe asset class, thinking the large run in gold's price from $761 last November may have been overdone.
"Gold isn't always a place to hide," agrees Katie Stockton, chief market technician for MKM Partners in Greenwich, Conn "It looks like the price of gold has stalled and these stocks can't gain traction with the market trading lower."
Still, Klapwijk tells the media that "prices could rebound later in the year," spurred by renewed investment by speculators. The Platts.com report has him saying: "We believe that it's far from ‘game over' for investors. The gold price in the coming months could easily re-attain the $1,000 mark and is likely to push up towards a fresh record high before the end of the year."
See also: Gold prices are erratic
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