Saturday, September 14, 2013

Gold should fall to below $1200 in short term as India dumps on market to stabilize currency

Over the past 10 days, the spot price of both gold and silver has dropped by more than 9% to stabilize around $1320 per ounce.  This move, which began on Sept. 3, and accelerated around the 9th of the month, is tied primarily to gold leases dumped on the markets by India in an attempt to stave off attacks on the Rupee.
According to a former head trader from the Royal Bank of Scotland, this metals beat down is a reaction to attacks by the U.S. on BRIC nations for attempting to create a new reserve currency and alternative lending facility, and in the short term, could drive the spot price to just below $1200.


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