Each weekday, Cash4Gold will troll through the web's gold banter and post some of the bigger or more interesting stories. Following is a run-down of today's features:
"RBC predicts 'significant volatility' in gold prices"
Author: Dorothy Kosich
Website: MineWeb.com
Main Points: RBC Capital Markets is projecting an average price of $850 an ounce this year, $875 an ounce next year, and $900 an ounce long term. Given the price of gold has been hovering in the $900-$1,000 range this year, that means a correction is likely soon to be in order.
"As noted above, we expect significant volatility in the gold price, and we could see a trading range from $750/oz to $1,000/oz in 2009," RBC analysts said.
Analysis: In other words, this could be a good time to sell your gold since, at least according to RBC, the price isn't likely to get much higher.
Of course, RBC sees an average of $850 an ounce this year, but you'll also find other "experts" who project a high pushing $1,500 or even $2,000-plus an ounce.
"U.S. Markets Wrap: Stocks Drop Most in Three Weeks, Bonds Gain"
Author: Eric Martin
Website: Bloomberg.com
Main Points: Stock struggled, but the dollar climbed today on Wall Street. When the dollar climbs, the price of gold typically falls.
"The dollar strength has definitely weighed on gold," said Frank McGhee, the head dealer at Integrated Brokerage Services LLC in Chicago. "De-leveraging is hitting the market again. If stocks fail, we have the general specter of the next move down, and gold looks heavy."
Gold dropped $7.60 to finish at $917.70 an ounce.
Analysis: On Friday, we quoted an article on GoldPrice.org that projected a price approaching and potentially exceeding $3,000 an ounce. Of course, the one caveat was that if gold fell below $920 an ounce, all bets were off. Well, there you have it. Under $920 and GoldPrice is off the hook.
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