French Bank Societe Generale has been bearish on gold since the start of the year, despite the metal’s 15% gains. With gold down this Wednesday, hitting a three-week low, could the bank be right? In an interview with Robin Bhar, head of metals research for Societe Generale, he told Kitco News the recent gold price rally looks unsustainable. The bank is taking the opposite view to rival Deutsche Bank that recently advocated buying the precious metal. Wednesday, the safe-haven metal was shunned as risk appetite among worldwide investors and traders picked up. April Comex gold settled the day down $24.60 at $1,224 an ounce. Bhar explains that the bank’s economists remain confident that the recent financial market turmoil and slowdown in emerging markets are unlikely to cause a recession in the U.S. He added that the market should gradually start pricing in a high probability of more rate hikes which is bearish news for gold.
on’t forget to sign up for Kitco News’ Weekly Roundup – comes out every Friday to recap the hottest stories & videos of the week:
Join the conversation @ The Kitco Forums and be part of the premier online community for precious metals investors: — Or join the conversation on social media: @KitcoNewsNOW on Twitter: — Kitco News on Facebook: — Kitco News on Google+: — Kitco News on StockTwits:
source
8 Comments
The fed just said they will not raise interest rates this time around, and will not be able to do so in the future. $20 trillion of debt, they can not raise interest rates. The US debt rises over a trillion a year or more since 2008, with no end in sight.
Debt deflation could push it lower but not what this guy is saying.
Are you F#*#" kidding! What a knob! On top of all the other crap he waffled about the gold is just like any other insurance policy bit topped it. Lol
This Guy is talking through his nose. He will get a job with the Feds for sure.
haha, this guy.
what a clown! anyone buying into this BS propaganda is nuts!!
Fundamentals could not be any better for gold. Negative interest rates, Stock Buybacks, Ongoing wars, China's finances, US Finance, Earnings reports……. Do I need to say any more? Gold has turned around it's trend. Central banks will do whatever it takes to keep gold under $1,300.000 and Silver under $16.00.
time to buy silver