By Larwence Williams
Australian Mining
As I write the gold price is sitting at around US$1225, but it fell at one time yesterday to around US$1206 and it may not take much to drive it down below the key US$1200 psychological support level. If it breaches this level the price could well fall sharply further with computer based stop loss sales coming in strongly. The fall could then become something of a rout.
And with gold bears like Jeffrey Currie at Goldman Sachs getting in there keen to generate further downwards momentum so his end- year US$1050 gold price might actually come about, then who’s to say it won’t freefall to US$1100 or below.
Currie and Goldman Sachs will doubtless have their avid followers, particularly within the financial community — after all Goldman could be perhaps described as the most successful investment bank of the past generation. True, some of its tactics for achieving this may not be seen as without moral flaws, but then this is something which could be applied to almost any investment bank — not specifically to Goldman.