"What we're seeing is a relatively prolonged pause and period of consolidation prior to gold makes an additional step higher," stated Philip Klapwijk, head of metals analytics. "The United States is bound to lose its triple A rating." Standard & Poor's removed the United States of its triple A rating in August 2011, helping to drive gold prices to a nominal record of $ 1,920 a troy ounce - a price level that has actually not been reached since.
More just recently, with United States political leaders haggling over the financial cliff and financial obligation ceiling, rating firms have actually been cautioning of even more downgrades. "I truly do think it's something that individuals are exceptionally sanguine about - the prospect that the biggest triple A market worldwide all of a sudden isn't so," Klapwijk stated. "There will be individuals obliged to sell United States government obligations and look for various other homes for their cash."
Klapwijk forecasted that, in addition to ongoing loose financial policy, would drive gold to a record high. Gold traded at $ 1,679.50 on Wednesday. "We feel that United States financial prospects are not as rosy as some think which there will not be sufficient development for the Fed to alter policy this year," he stated. Nonetheless, GFMS acknowledged an "expanding voice that the decade-long rally may be over".
"There has actually certainly been a loss of momentum," Klapwijk stated. "Some classes of purchasers have actually practically filled their boots and might even have actually been prepared to offload a bit. New purchasers have not stepped up to keep the price greater."
He stated that the prospect of tightening up financial policy in the United States to the end of 2014 might mark completion of the gold booming market. "You've got to see a brand-new high this year to verify the gold booming market. If we do not get that, time could possibly begin to run out." How High Will Gold Go? Learn more >> http://www.silverpricestoday.cc/
Weaker demand from the vital Asian markets of India and China likewise helped to keep gold prices subdued last year. Chinese jewelry and financial investment demand were down 1 and 2 per cent respectively last year, while Indian net imports fell by about a third, GFMS stated. Nevertheless, India hung on to its position as the globe's biggest gold customer, purchasing about 40 tonnes even more of the metal than China, Klapwijk stated.
"We are rather positive that China will at last get the top spot this year," he included. My suggestion is to purchase gold and purchase silver today. The gold price and silver price are absolutely going higher in 2013. How high will silver go? Learn more >> http://silverpricestoday.cc/