Gold prices have continued the tumble that began on Friday, trading
below the $US1500 an ounce mark – a 4.5 per cent drop, taking the
commodity to the lowest it has been since early 2011.
On Friday Goldman Sachs predicted the precious metal has already reached its peak and would begin a steady march down to $US1200 an ounce in the next five years.
The speed of the fall has surprised market watchers, with gold trading below $US1,450 ($A1,387.10) an ounce on Monday and 24 per cent below its record highs of 2011, putting it in bear territory.
The trigger for Monday's pain was a fall in value of $US63 an ounce, or 4.1 per cent, on Friday night to cap off a 6.1 per cent fall for the week.
The explanations and rumors for why the price of gold is falling ranged from positive views about the US economy sparking an end to monetary stimulus; to consortiums of bullion or central banks artificially pushing the price down and selling in large volumes to China.
CMC Markets chief market strategist Michael McCarthy predicts the price will fall by at least one third to $US1,000 an ounce and as low as $US880.
On Friday Goldman Sachs predicted the precious metal has already reached its peak and would begin a steady march down to $US1200 an ounce in the next five years.
The speed of the fall has surprised market watchers, with gold trading below $US1,450 ($A1,387.10) an ounce on Monday and 24 per cent below its record highs of 2011, putting it in bear territory.
The trigger for Monday's pain was a fall in value of $US63 an ounce, or 4.1 per cent, on Friday night to cap off a 6.1 per cent fall for the week.
The explanations and rumors for why the price of gold is falling ranged from positive views about the US economy sparking an end to monetary stimulus; to consortiums of bullion or central banks artificially pushing the price down and selling in large volumes to China.
CMC Markets chief market strategist Michael McCarthy predicts the price will fall by at least one third to $US1,000 an ounce and as low as $US880.
