Deutsche Bank says much of the downward price correction in gold may have already occurred. “Lessons from history suggest that although gold price losses have been extreme, the extent of the price correction…is still some way short of the percentage declines that occurred in 1980-1,” the bank says in a weekly commodities report. “However, we would classify events over 30 years as significantly different since at that time U.S. short-term interest rates rose to 20% with real interest rates also rising rapidly. As a result, while we still view Fed policy as a strong headwind to gold returns, it is possible that the major part of the gold price correction has now already occurred.” Deutsche Bank looks for $1,350 gold in the third quarter, $1,300 in the fourth and then $1,350 again in the first quarter of 2014.
By Allen Sykora of Kitco News
http://www.kitco.com/news/2013-07-08/kitcoNewsMarketNuggets20130708-kitco-market-nugget.html
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