Gold has pushed below $1,400 again. And despite a bump Thursday on a decidedly “risk-off” day for the market after poor China manufacturing data, gold prices are threatening to retest lows around $1,320 set in mid-April.
Of course, the rebound in gold prices off those April lows — about 12% in just several trading days — have some swing traders wondering if another leg up is in order.
Charles Sizemore of Sizemore Capital Management chats with me about the dynamics working against gold in this latest podcast, particularly the notion that somehow the selloff is less real because it involves “paper gold” as securitized via bullion-backed ETFs like the SPDR Gold Shares (GLD) or the iShares Gold Trust (IAU).
My two cents: Gold’s declines are real, the losses are real, and the risks to future declines are real, too.
You can get all the details in this recording, and more insight in the links below.
What do you think? Will gold prices go up or down? Sound off in the comments.
- A handsome fellow recently said that gold will not make a comeback. (MarketWatch)
- Is a double bottom for gold a bullish sign? (Bloomberg)
- On the other hand, so many gold shorts mean that downside may be left to come. (Bloomberg)
- Why Warren Buffett hates gold. (InvestorPlace.com)
Jeff Reeves is the editor of InvestorPlace.com and the author of “The Frugal Investor’s Guide to Finding Great Stocks.” Write him at email@example.com or follow him on Twitter via @JeffReevesIP. As of this writing, he did not own a position in any of the stocks named here.