The Globe and Mail reports in its Saturday, Oct. 18, edition that no discussion of safe havens is
complete without a mention
of gold.
The Globe's Satish Sarangarajan writes that anyone who was invested in
the yellow metal these past
few years has likely lost a good amount of coin.
Given the intense selling
pressure elsewhere, however, bullion
prices could move up for the
short term, as they did last week, rising to a one-month
high.
That move, however, is more
an aberration and less an
emerging trend, analysts say,
as the increase will likely
come up against a tightening
monetary stance from the United States
Federal Reserve and a stronger
U.S. dollar, which will likely
offset any safe-haven inflows.
Gold prices hit a low of
$1,180 in June, 2013, when
Fed Chairman Ben Bernanke
announced the decision
to taper bond
repurchases.
The metal retested the low
in December, and again
recently this year.
Bank of Nova Scotia commodity market expert Patricia Mohr says: "We've seen the low, which
may well hold. But I don't see
a lot of upside potential from
where we are now."
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