With the markets in whiplash mode, Joe McAlinden, founder of McAlinden Research Partners and former chief global strategist with Morgan Stanley Investment Management, believes volatility is going to stick around for a while, and we might see a correction double of what we've had so far.
The U.S. Comex gold futures dropped 0.94 percent this week and fell 1.64 percent this month to end at $1,152.60. Month-to-date, the S&P 500 Index returned 0.91 percent while the Euro Stoxx 50 Index fell 3.74 percent.
Crude oil prices continue to struggle to the upside as the first snapshot of fundamentals this week--the API inventory report--was mostly bearish. The more widely followed oil inventory report is due out at 10:30 a.m. EST this morning which is expected to show an across the board build in the complex.
When Dr. Alan Greenspan became chairman of the Federal Reserve, he moved from the world of rhetorical economics to the world of action. His most recent memoir attempts to make sense of how the financial crisis of 2008 came to be and how we can better predict future crises, along with the role of gold in a global monetary system.
The 2014 Interim Gold Report published by the GFMS team at Thomson Reuters states that gold prices are likely to bottom out between $1,170/ Oz and $1,200/ Oz in 2015, 10% lower than the 2013 average prices.