Gold is Dead Money as Sentiment Wanes
Get Alerts GLD Hot Sheet
Price: $220.34 +0.34%
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 17 | Down: 14 | New: 17
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 17 | Down: 14 | New: 17
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With central banks printing money like water, it was not long ago that gold was the toast of the town. But with inflation still non-existent even amid the flush of cash the tides have turned on gold and even big money buyers like John Paulson are getting scared.
Today, gold got knocked down another peg. UBS lowered their gold price forecast on weak sentiment for the precious metal heading into potential QE-tapering.
"With the market now increasingly refocusing on QE-tapering, gold has resumed its downward trend," analysts led by Brian MacArthur said. "Together with weak underlying sentiment, as evidenced by the disappointing price performance even in the face of bad news such as tensions in Syria and the US government shutdown and given constrained Indian demand under the current regulatory framework, UBS believes the recent downward pressure will continue and sees a lack of supporting catalysts."
UBS cut its 2014 average price forecasts to $1,200/oz from $1,325/oz. Similarly, UBS has lowered its silver forecasts for 2014 and 2015 to $20.50/oz and $21/oz from $25/oz and $24/oz, respectively.
The new price target from UBS suggests flat-to-down gold prices from current levels of $1219/oz on the spot market.
Related ETFs: SPDR Gold Shares (NYSE: GLD), iShares Gold Trust (NYSE: IAU), Market Vectors Gold Miners ETF (NYSE: GDX), iShares Silver Trust (NYSE: SLV).
Today, gold got knocked down another peg. UBS lowered their gold price forecast on weak sentiment for the precious metal heading into potential QE-tapering.
"With the market now increasingly refocusing on QE-tapering, gold has resumed its downward trend," analysts led by Brian MacArthur said. "Together with weak underlying sentiment, as evidenced by the disappointing price performance even in the face of bad news such as tensions in Syria and the US government shutdown and given constrained Indian demand under the current regulatory framework, UBS believes the recent downward pressure will continue and sees a lack of supporting catalysts."
UBS cut its 2014 average price forecasts to $1,200/oz from $1,325/oz. Similarly, UBS has lowered its silver forecasts for 2014 and 2015 to $20.50/oz and $21/oz from $25/oz and $24/oz, respectively.
The new price target from UBS suggests flat-to-down gold prices from current levels of $1219/oz on the spot market.
Related ETFs: SPDR Gold Shares (NYSE: GLD), iShares Gold Trust (NYSE: IAU), Market Vectors Gold Miners ETF (NYSE: GDX), iShares Silver Trust (NYSE: SLV).
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