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Nouriel Roubini, famed economist known as “Dr. Doom” for his pessimistic predictions, may be right in his warning that gold could dip below $1, 000 in 2015, as reported by Business Insider. U.S. Global Investor CEO Frank Holmes noted that the yellow metal plummeted below its 200 day moving average of 1, 268 recently, and remarked that the current action is “within the normal DNA of volatility of gold.”
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Gold is suffering mainly from the strong dollar, and often has an inverse relationship to the currency. Kitco reports that 7 out of 10 investors backed up Roubini’s dire predictions, but a few vocal skeptics, such as Axel Merk, said that $1, 000 for gold will only happen if the Fed becomes very hawkish, and the Federal Reserve has been quite moderate in its actions lately.
While it is unlikely, according to some analysts, that much could happen with gold over the holidays, a destabilized Russia could make prices plummet, no matter what the date on the calendar. Other factors that made gold prices fall in 2014 were the rising stock market, the increasing popularity of ETFs and lower consumption of gold in Asia.
Nouriel Roubini was born to an Iranian Jewish family and grew up in Turkey and then Italy. He also had positions at the IMF, the Federal Reserve, the World Bank, the Bank of Israel.
