Fundamentals still the same

摘要

One international gold bug has reassured investors that the price of the precious metal will not undergo another major correction - at least in the foreseeable future. Goldletter International author Marino Pieterse said the recent market volatility - which saw the gold price topple to close to 600 US dollars/ounce at the end of September after reaching a 725 US dollars/oz high during mid-May - should in fact be connected with the fall of the oil price after its deflation from 78.44 US dollars/barrel in August to last month's 59.08 US dollars (due to lessoning concerns related to Iran's uranium-enrichment program and OPEC's promise to maintain peak oil production). "The unusually strong volatility has nothing to do with a change in fundamental facts related to demand and supply, and can also not be contributed to a change in the monetary correlation between gold and dollar prices, as the dollar has been quite stable against the Euro for some time," he explained. "Lower oil prices have been translated into a lesser inflation threat, thereby ending a period of (US) Federal tightening. "This has resulted in a strong performance of the equity markets of late, with the Dow Jones index even touching a new high of 11,728 - the highest level since January 14, 2000." Pieterse said based on recent developments, he did not expect a correction in the gold price to occur, predicting the precious metal would remain between 620 US dollars-60 US dollars/oz for the remainder of the year.