Deutsche Bank strategist says gold crash is just beginning
An overnight piece from Bloomberg on gold, Deutsche Bank very bearish on it
Comments from Deutsche Bank Chief Global Strategist Binky Chadha, says:
- "Positioning is very, very long"
- "The way we think about it is, gold looks to be 20 to 25 percent overvalued"
- Mounting expectations for a rate hike from the Federal Reserve in December
- Stronger dollar
- And, even more importantly, a recovery in global growth ... "I would argue it's more likely a tick-up in U.S. growth on which we remain constructive and therefore global growth"
We should probably take the view from DB seriously. I mean, who else but DB is so eminent an authority on a price crash?
(OK, off to the naughty corner for me)