Why not?
Are you asking us to foretell future price? Or maybe the trend and direction? Or maybe how to "know" what to do when certain news arises. None can be predicted. Answered a similar question here:
https://answers.yahoo.com/question/index...
The "why" always comes later.
The conditions needed for a drop in gold price would be rising interest rates and a glowing economy. That won't happen overnight. What gold price will actually do is unforeseeable.
Gold retains its historic role as a “safe haven” in times of economic uncertainty. Demand for this safe haven affects the price of gold.
After declining for two years, gold is overdue for a bounce, and has made a Double Bottom in price at 1,200. The failed breakout above 1350 is disturbing, or maybe price is finding its new range between 1,200 and 1,400, and now has settled in the middle.
1,280 appears to be the line in the sand, support of the day, below which we retest the lows at 1180, above which we go to 1,500.
https://answers.yahoo.com/question/index...
If this is true, I'll buy and hold until the prices rise again ;-)
Take Care
Traditionally owning gold was a hedge against inflation i.e. if you bought gold it would rise in value as prices for consumer goods increased. In the current global economic forecast, there's no signs of rapidly rising inflation so there's not much upward pressure on gold prices.
If gold prices drop much further, then many current gold mines will be shutting down because the cost of mining an ounce of gold will exceed the value of an ounce of gold. Decreased production will stop prices falling so far.
I could see gold going lower - say to $900/oz - closing price in 2008 was $869.75/oz. The closing price in 2012 was $1664/oz so a price around $900 would be fifty percent down from the recent peak years.
50%? Only if they discover how to turn coal into gold.
rumors and speculations, like the one you are trying to start ?? { << seriously. }
