by Jan Skoyles, TheRealAsset.co.uk
Gold prices fell for the eighth straight session today as bearish bets on the yellow metal rise. It still remains vulnerable to institutional selling. Gold futures fells 5% on COMEX last week. Holdings in gold bullion backed ETPs remain at their lowest level since July 2011, a further 3-5 million ounces of selling is expected to occur – liquidation has so far reached 13 million ounces.
Shrill bear call from Credit Suisse
Credit Suisse said last week that they believe gold will be trading at $1,100 by the end of the year and below $1000 within five. They are clearly feeling more optimistic about the global economy than we are. In great PR grabbing comments, Ric Deverell, head of commodities research at Credit Suisse told reporters “Gold is going to get crushed…The need to buy gold for wealth preservation fell down and the probability of inflation on a one-to-three-year horizon is significantly diminished.”
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