Gold Will Fail to Glitter, says HSBC
Source: Goldmau.com (3/6/09)
"While the economic environment is gold-supportive, we believe that gold prices are more based on trends than fundamentals. . ."
According to traders, sales of gold exchange traded funds have ebbed away and hedge funds have been forced to close long positions to meet higher equity margin calls.
However, there are plenty of gold bulls out there, whose opinions balance the bears. According to Middle East research outfit Zawya: "It is not unrealistic to predict $1,200 an ounce in the next 12 months."