Gold prices quietly continued sinking lower Wednesday as stocks were subdued, crude oil fell and the dollar index rose. In the last year, gold has fallen off a cliff, going from highs of nearly $1,790 in October 2012 to about $1,280 currently — a drop of about 28%. However, possible signs of life have been detected in the last several days.
According to Hard Assets:
“Demand for physical gold and silver seems to have picked up over the last week or so. Investor demand for gold at what some consider to be relatively low prices could potentially halt the slide in gold prices.”
Thomas Schuster, a geologist and mining analyst, told The Gold Report the gold is ready to come back strong as global reserves melt away.
“Gold will rebound, it always has and always will,” said Schuster. “The mining market is almost violently cyclic. Deep lows are followed by spectacular highs. The tough question is when will the gold price rebound happen?”
Schuster thinks soon. As does MarketWatch columnist Jeff Reeves, who gives four reasons why gold is poised for a comeback in this article.