Gold prices pulled back this past week after shares in Asia were hit hard by JPMorgan’s massive $2 billion loss, political turmoil in the eurozone, and weak economic data from China. The JP Morgan loss may be higher than the reported $2 billion and could spur investors to sharper sell offs in markets which could lead to a further pullback in gold prices.
Despite the likelihood of a dip in prices, the JP Morgan loss is a positive for gold as it shows how little has been reformed on what continues to resemble a casino for investors, Wall Street and the global financial system. The JP Morgan loss also shows that systemic risk still remains.
Even today, Morgan Stanley analysts stated that gold’s bull market “is not over” and that they are buyers of the metal at current prices, arguing that recent low prices are “consistent with distressed selling and long liquidation,” and that prices will recover in the coming weeks. Read More
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The representatives at Capital Gold Group are not financial advisors and the information provided in this blog should not be considered financial advice. The past performance of gold investments is not indicative of potential future gains.