Nouriel Roubini, Chairman of Roubini Global Economics and professor at NYU, forecasts a 30% fall in gold to prices below $1000/oz - levels not seen since 2007

Nouriel Roubini, Chairman of Roubini Global Economics and professor at NYU, forecasts a 30% fall in gold to prices below $1000/oz - levels not seen since 2007. As gold does not provide dividend income, yield-hungry investors are moving towards riskier assets as the markets improve. Gold is a store of value and performs best during periods of high inflation. However, despite the increase in money supply from central bank stimulus, global inflation remains low. Government holdings are also a threat as gold fell 13% in a single day when Cyprus threatened to sell a fraction of its $400 million reserves.(VIEW LINK)