from Gold Silver Worlds:
During the last week, gold has suffered a drop, falling as low as $1,293 in a few days. Janet Yellen recently suggested that the Fed could raise interest rates, as evidenced by Reuters (among many others): “Higher interest rates would encourage investors to switch to assets that, unlike gold, pay interest.” The airplane crash in Ukraine took gold higher from its low, but remains under $1,320 as of July 18.
Rick Rule, Chairman of Sprott US Holdings Inc., comments on the gold price action by saying gold could fall back another 10% as a normal event in this market. What is Rick Rule’s outlook for gold in 2014? Q: Rick, does the recent drop in the gold price affect your outlook for gold in 2014?
Rick Rule: No, not at all. In a recent interview, I suggested that gold and gold equities would grind higher after reaching a bottom in July of last year. That is precisely what’s happening. We’re seeing higher highs and higher lows, but every new high requires a subsequent consolidation. You’ll be up 10 or 12%, then off 8 or 9%. T
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