Quoted at CNBC on Gold’s ‘New Equilibrium’

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Gold below $1,200 needed for ‘new equilibrium’

by Sri Jegarajah

A drop in gold prices below $1,200 an ounce may precipitate a fresh round of production cuts in the mining sector aimed at re-balancing the market, strategists told CNBC.

Although the short-term view on gold remains overwhelmingly negative – with nearly three quarters of respondents in this week’s CNBC gold sentiment survey forecasting further weakness for bullion – many say prices may start stabilizing below $1,200 – levels where a supply response from the mining sector may kick in.

Read the full piece at CNBC.com.

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