Bearish sentiment toward gold has prices for the yellow metal tumbling again.
On Wednesday, George Soros revealed through a regulatory filing that he cut his gold exposure during the first quarter.
In a new note to clients, Credit Suisse’s Ric Deverall forecasted that gold would plunge to $1,100 this year and eventually to $1,000 within five years. This according to Bloomberg’s Maria Kolesnikova.
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“Gold is going to get crushed,” Deverell told reporters in London today. “The need to buy gold for wealth preservation fell down and the probability of inflation on a one- to three-year horizon is significantly diminished.”
“When gold is going up, it looks like a great idea to buy more gold,” Deverell said. “And when it’s going down, do you really think risk-averse central bankers are going to try and catch the knife? No.”
Deverell was responding to the latest stats on central bank gold reserves. According to a new report from the World Gold Council, these banks bought around 109 tonnes of gold in the first quarter, marking the seventh straight quarter of net purchases.