The prices for gold can plummet to $1,000 per troy ounce by 2015, MarketWatch says citing the interview of cofounder and chairman of Roubini Global Economics Nouriel Roubini to Index Universe. The leading economist known as Dr Doom for his pessimistic forecasts warned of a global financial crisis in 2007-2009.
One of the reasons for the price fall is lower risks in the global economy. As Roubini stated, inflation will remain weak hampering the gold prices increase. Moreover, the real interest rates became negative in the USA and Europe. In the opposite situation there is no sense in investing in gold as positive rates can bring good yields.
Besides, Roubini touched upon the possible moves of the U.S. dollar. In case gold maintains its current position against the major currency basket, it will cost less than the dollar.
The gold was traded near $1,325 per ounce on July 30. At that, the quotes lost almost $500 from their high of $1,800. The most significant decline was observed in May-June of the current year. Meanwhile, the yellow metal is above its pre-crisis figures. In early 2008 it was worth about $1,000, having shed more than 30% in the course of the financial turmoil. In 2004 it was below $500.