Gold prices 'may have reached an important bottom'

US monetary theorist Franklin Sanders claimed on Monday (October 27th) that gold prices may have reached a significant bottom in the current economic climate.

The yellow metal has experienced a downturn recently since shooting through the $900 per oz barrier on October 8th but has shown early signs of recovery in the past few days.

With the Fed expected to cut interest rates today and the rally in the dollar looking to be stalling, Mr Sanders has claimed that now may be the right time to start investing in gold.

He wrote at goldprice.org: "Obviously confirmation is needed, but it now appears that silver and gold prices have made an important bottom.

"Premiums are still crazy high, deliveries are three weeks to 16 weeks, so silver and gold markets remain under fierce buying pressure."

Meanwhile, Mitsubishi precious metals strategist Tom Kendall has explained in an interview with Reuters that the rash of selling last week may have been premature.

He told the news provider: "We see buying coming back in across a lot of asset classes. I think the selling from last week proved to be a little bit overdone."

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