Is gold preparing for another shot up to $2,500/ounce heights or on the way down after being overbought? Two respected names in the investing world share their arguments for what could happen in the coming years and how to profit from it.
Gold prices fell towards the $1,645 level at the opening of the midweek session in New York as the US dollar climbed slightly on the trade-weighted index. The initial action was rather subdued but speculators were perhaps justifiably skittish.
As expected, the US elections did not have material impact on the precious metal markets. However, with all eyes on the US elections and the forthcoming QE2 announcement, little attention is being paid to the renewed risk of a sovereign debt crisis.
The yellow metal opened with a $3.10 per ounce gain just ahead of release of US new home sales and durable goods orders data amid by now 'normal' amount of apprehension exhibited since the last Fed meeting.