Could gold fall to $700?

The risk of deflation in developed economies’ growth and technical pointers turning bearish, could cause gold to drop dramatically, even to $700 an ounce.

Yoni Jacobs, Chief Investment Strategist at Chart Prophet Capital, told CNBC that if Gold dropped below the psychological benchmark of $1,500 an ounce, panic selling could follow.

Read: Is gold overvalued?

Lack of further money printing by the Federal Reserve could also spark a selloff of gold. The metal has dipped below the $1600 an ounce level eight times in the last 10 months.

Read: World markets lower, Fed actions not enough

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.