Gold has taken a beating since last week, when Cyprus announced a plan to sell reserves to raise around 400 million euros. This prompted concerns that other indebted eurozone countries could follow suit.
So far, the metal has dropped to its lowest level since March 2011.
However, IG’s Chris Beecham says that the latest move shouldn’t affect gold’s long-term trajectory: “It depends on where you look and your perspective. If you are looking from a far longer time frame, then the bear market in gold has started. But it really hasn’t dented the long uptrend.”
Indeed. As Karim Rahemtulla told WSD Insiders on Friday, the situation is actually creating strong buying opportunities in the gold market. Louis Basenese thinks so, too. Be sure to check out his article on the subject this week.