Mar 06 2012
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Gold drops below $1,700/oz; how much lower can it go?
Analyst sees gold dropping to $1,500 per ounce
While spot prices fell to $1,694.82at 1.30pm UAE time (9.30am GMT), a gram of 24ct gold was retailing in Dubai at under Dh200, its weakest showing in 45 days.
Yesterday, after the Chinese government's announcement of a lower than the earlier forecasted 8 per cent growth target, the price of gold traded in a wide range between $1,695 and $1,720 per ounce in overnight trading.
On the other hand, silver prices dipped only marginally today and were trading at $33.46 per ounce at 1.30pm UAE time. Silver has seen limited gains recently as the white metal is up 2.17 per cent in 30 days. However, that is on the back of a correction that it saw in February, and silver is still down almost 20 per cent in six months.
He further maintained that silver prices will, in the long run, track gold. "Gold and silver will move in the same direction, up together or down together. At times, silver will be stronger relative to gold, and at other times gold will be stronger relative to silver," he said.
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