Demise of gold ‘in early stages’

<p>The price of gold could drop even further in the coming months.</p>

The value of gold could be set to drop by even further in the coming weeks and months, after the price of the precious metal fell by over ten per cent in the last two days.

ABN Amro commodities strategist Georgette Boele explained she believes the demise of the commodity is still in the early stages.

Speaking to the Market Oracle, she stated other assets are going to become increasingly more attractive as the growth outlook improves.

Peter Richardson, chief metals economist at Morgan Stanley Australia, added: "Some of the key pillars of the gold bull market look like they're suffering fatigue."

A note from UBS pointed out that when the price of gold has fallen this sharply in the past, it is typically followed by either a sharp rebound or "a period of consolidation".

Gold's losses in recent days have led to the precious metal plummeting to a new two-year low. Speaking to the Financial Times, Joni Teves, precious metals strategist at UBS in London, described the drop in the commodity's value as "nasty".

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