The gold price in November has been the worst since 1978. The prices dropped about 5.5%, this month. The Gold ended its twelve year winning streak by closing in 2013, in a negative territory. According to the portfolio manager of Pacific Investment Management, the Bull Run, for gold, is over and it will soon be out of the people’s radar for investment.
Reason for the Gold Bull Run
With the fear of inflation and the weaker dollar, the Federal Reserve gave Gold a boost run to avoid falling into financial crisis. Now with winding down the monthly bond purchases, the risk of inflation has been reduced and the economy is considered to be stable.
McGhee talks
The senior precious metal dealer, Frank McGhee says that nothing will go up forever. He says it is the beginning of an economic rise, without any signs of the inflation. The market is going to be bearish for gold, according to him.
The gold fell 12% in June 2008 and 18% in October 2008 and thus, December has not seen a plunge in Gold rates. In the mercantile Exchange, the gold delivery price for December rose by 1%.
Source: http://www.businessspectator.com.au/news/2013/11/30/commodities/gold-posts-worst-nov-35-years