When will gold bottom out?

Question

It has dropped more than 100 an ounce in a week

Answer 1

I feel the commodities, including gold, have peaked and will not really go up for some time. The world's economies are slowing down and a sluggish economy is not favorible for hard assets. Gold is yesterday's investment. Notice that the dollar has been going up recently and oil dropping. I suggest you keep a pulse on what is currently working rather than trying to play yesterday's winners.

Answer 2

Many investors think that inflation will be decreasing due to the lower price of oil.  And lower inflation usually decreases the demand for gold and thus lowers the price of gold.

But inflation is not the only thing that supports the price of gold.   If the world economy goes into a deep recession.  Then the resulting economic insecurity may drive up the price of gold.

For now, the price of oil and the price of gold are strongly correlated with each other.   But they may decouple from each other if it becomes apparent that large economies of the world are going downhill.

Answer 3

If anyone truly knew the answer to that question, they certainly would not be sharing it here. That being said, the bottom could be a long ways away. This drift down can go on for some time.