The previous investment banks’ downgrades of gold price forecasts for 2013 and 2014 was reported in the middle of April 2013, approximately 75 days ago. At the time, the downgrades caused a two-day nearly $200 losses to the prices of gold.
- Read more: Big Money Managers Bearish on Gold
However, since then the yellow metal’s price relatively stabilized and traded in a tight range, visibly pushing the upper barrier of the range. Market observers even began toying with the probability for gold price to advance, while retail investors and traders saw a buying opportunity.
News fade out faster and faster in the era of advanced technology. The hunger for novelty drives momentum and consumer sentiment, and if it is skillfully navigated, it may also trigger panic selling or mindless buying.
Since the middle of the last week, major investment banks around the world are making the news with new revised gold price forecasts. Are the hurried up revisions used as promotional tools for strengthening brand names of money managers in the financial world? Most probably not, but still such coordinated revisions of a number of big investment banks cannot remain unnoticed.
Read more:
- Deutsche Bank cuts gold, silver price forecast
- Goldman Sachs Cuts Gold Price Forecast
- Societe Generale Cut Gold Price Forecast Again
As history of similar events suggests, the effect of gold price forecast downgrades is no longer long-lasting. This types of actions simply became too frequent.
In addition, gold price lost about $150 an ounce during the past two days. At what level, gold would bottom out from the most recent investment banks’ forecasts revisions?
In comparison to all time high of over $1,900 an ounce in September 2011, the current gold price may be also translated as a good buying opportunity.
Time to buy!