The gold price reached a fresh seven-year high a few days ago. But yesterday, the price of gold came under pressure with the overall market when market participants built up cash again. Georgette Boele, precious metal analyst at ABN Amro, has now spoken up and doubts that gold can fulfill its role as a safe haven. She believes gold may well face headwind in the coming months.
ABN Amro is obviously of the opinion that gold will not fulfill its role as a safe haven. The weak economic development will also affect jewelry demand. Investors would increasingly turn to the US dollar. The analyst recalled the financial crisis. At that time, the gold price collapsed 20 percent while the dollar started to rally. The ABN Amro expects an average gold price of $ 1,523 for the current year. That is well below the current exchange rate of around $ 1,637. Pending monetary easing measures by the European Central Bank and the US Federal Reserve have already been priced in according to Boele. In addition, the speculative interest in gold in a high and gold is thus prone to profit taking.