The selloff in gold
is set to deepen as the dollar will probably extend gains, according to ABN
Amro NV, which forecast that the precious metal may end this year at $1100 an
ounce and finish 2015 at $800.
“Do not try to catch
a falling knife,” analyst Mr. Georgette Boele
“The U.S. dollar rally has further to run,
especially if the Fed turns more hawkish this year.”
Bullion retreated to
the lowest level since April 2010 yesterday as the dollar advanced and holdings
in the largest bullion-backed exchange-traded product contracted.
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