Can Gold Prices Fall To $1500 Per Ounce?

How low the gold prices can go before a rebound? Can gold price fall to $1500 per ounce? If there is a rebound, will that rebound in the gold price be strong enough? Can the gold price reach $2,500 per ounce? These questions are again and again been asked by many gold investors who had invested in the yellow metal as a safe haven. Tom Aspray, a contributor on Forbes.com in a recent article analyzed the gold market and made a number of predictions.

Tom Aspray says in his article on Forbes.com that the sharp decline in the gold futures and the SPDR Gold Trust (GLD) from the high of September 2nd 2011 has dampened the bullish sentiment in the gold market. The rally that took place after September 23rd was weak and indicates another possible sharp decline in the gold prices.

According to Tom, this correction in the gold market can last for another one to two months. The weak rally in gold indicates that the rebound is over. Moreover the concerns about the Eurozone debt problems have not supported the gold prices. The stronger US Dollar rally is further hurting the metals. However according to Tom, the monthly OBV (on balance volume) analysis indicates that the major trend in the gold market is still positive and up. According to him the possibility of a strong rebound after gold prices reach $1500 per ounce mark are there.

Amanda Cooper reported on Reuters.com that the uncertainty has clouded the outlook for the gold market in recent weeks. According to her, gold safe haven properties have taken a back seat to those of the US Dollar as investors have shunned the euro dominated assets which in turn has posed a stiff headwind to the bullion price as this tends to benefit from a weaker US economy. The catalyst that can help the gold reclaim its safe haven status are renewed dollar weakness and a breakdown in the correlation of gold with risk.

Many investors have been trading gold in the past few months. Some have even taken losses when the gold prices made a retracement from the high that was reached in September 2011. If you are a gold trader, the best method for you is to trade the daily gold price breakouts. John Campbell who lives in the Canary Island trades these daily gold price breakouts with a Gold Trading System that takes him not more than ten minutes daily around the NY market close and has a win rate of 60%. This gold trading system uses only one pending order!