Is it sink or swim for gold investors?
Gold prices have declined to three-month lows on renewed risk appetite among global inestors
Some experts opine that the time is still to come when we can actually say it’s a reversal and that should take atleast six months. (REUTERS)
Is the current drop in gold prices an opportunity to buy or does it mark the end of the golden period for the safe haven commodity? That's the billion dollar question that analysts the world over are trying to answer.
Gold prices have declined to three-month lows on renewed risk appetite among global investors encouraged by positive data coming out of some the world's largest economies.
As optimism over the prospects for the global economy is spurring renewed risk appetite, and the belief that gold will fall out of favour is gaining ground.
Genuine confidence encourages diversification into different, riskier assets and subsequently away from gold.
But is the appetite for risk huge enough to mark a reversal in the gold trend?
According to analysts at Standard Bank, the renewed risk appetite has worked against gold and it has fallen because of reduced safe-haven demand.
According to analysts at Standard Bank, the renewed risk appetite has worked against gold and it has fallen because of reduced safe-haven demand.
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