Monetary supercycle demise could add $1,000s to gold price
London (Oct 6) On Thursday gold continued to drift lower following Tuesday's crash through the $1,300 an ounce level to its lowest since June, before the Brexit vote lit a fire under the metal.
In early trade December futures trading on the Comex market in New York touched a low of $1,265.10 an ounce, the fifth down day in a row.
Diego Parilla, managing director and head of commodities at Old Mutual Global Investors, told Bloomberg's Rishaad Salamat on Trending Business, that the bubble in government debt and equities, the extended period of very low and now negative interest rates in developed markets could only end in pain for investors.
Parilla calls it a monetary supercycle and the excesses of financial inflation would lead to an appreciation in the gold price of "several thousands of dollars":