As gold prices trade just above five-year lows, one long-time commodities researcher says the metal may see short covering rallies, but any uptick is unsustainable. “You might see these short-term rallies, every time shorts get overstretched, but nothing beyond that which would take prices up substantially,” Rohit Savant, CPM Group’s research director, told Kitco News Thursday. He said that there will not be sustainable gains in gold prices as he expects prices to remain range-bound at these lower levels over the next few years. Over the shorter term, Savant said that gold has the potential to move up by $100 in the second half of the year. “[It] may even go back to $1,200-1,220 [an ounce],” he said, reiterating that he doesn’t think anything beyond that level is likely for the beleaguered precious metal. Kitco News, July 30, 2015.
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3 Comments
We will see gold and silver rise when the dam breaks. Only then will investors see a problem.
What's driving the price of gold is the paper price of gold and the paper price of gold is manipulated by big banks/Central Banks selling virtually unlimited amounts naked shorts any time they want. Until there is a failure to deliver physical gold or there is an outlawing of naked short selling, the manipulators will continue their job.
I hope it stays this low for a couple years, I need to finish my stack first before the SHTF.