GOLD PRICE NEWS – The gold price slid $4.32 to $1,314.99 Monday as the price of gold was pressured by a rebound in the U.S. dollar. The SPDR Gold Trust (GLD), a proxy for the gold price, finished lower by $0.45 at $128.46 per share. Today’s gold price sell-off came as the euro fell 0.8% to 1.3681 against the dollar on renewed concerns of a slowing economy. In spite of Monday’s weakness, however, the gold price and GLD remain higher in 2010 by 20.1% and 19.7%, respectively.
With talk of record gold prices receiving greater attention of late, one of the world’s foremost gold bulls reiterated his positive outlook this afternoon. On CNBC’s Closing Bell, legendary investor Jim Rogers told Maria Bartiromo that the price of gold will reach $2,000 per ounce in the next five to ten years, a prediction he originally made earlier this year.
However, he currently prefers silver because it remains 60% below its all-time, while the gold price has already made several new highs in the past year. Although gold’s run may “slow down” in the shorter-term, over the longer-term “it is going much higher.” As for the U.S. dollar, while he would not be surprised to see a rally in the short-term given that “everybody is pessimistic right now” on the greenback, over the longer-term “it is going to disappear” because the Federal Reserve has vowed to reignite the printing presses whenever it deems necessary.
Rogers also provided his outlook on the broader markets, stating that “I’m going to make more money in commodities than stocks.” He predicted that commodities will continue to outperform stocks if the global economy recovers, or if it does not, because of the habitual response of easy monetary policies by central banks.
“Bernanke’s going to print more money,” said Rogers, who again criticized the Federal Reserve and U.S. government for bailing out companies during the financial crisis. ”Mr. Bernanke doesn’t know what he’s doing…He’s been wrong, over and over. He and Mr. Geithner and Mr. Summers…have all been dead wrong…everything is worse instead of better…The idea that we continue to hold up dead companies and dead banks” is a huge mistake.
