How low can gold price go? This is the question in the mind of most gold bugs. US Dollar is getting stronger and if we go by the previous correlations, this means gold price should go down. This is precisely what is happening. Expect gold to go low more. Watch this video that tries to guess how low the gold price can go. As a gold trader you should always keep the market fundamentals in view.
“Since gold is a dollar-denominated commodity, as the dollar goes up, gold gets more expensive for non-U.S. dollar purchasers,” explained Erin Gibbs, equity chief investment officer at S&P Capital IQ Global Markets Intelligence.
Gibbs, who advises over $12 billion in assets, sees the dollar getting strong because of policies at the Federal Reserve and the European Central Bank. While the Fed is on path toward higher interest rates, the ECB continues to ease and may possibly look to quantitative easing to help jumpstart the eurozone’s economy.