TORONTO(BullionStreet): History has a knack of repeating itself and that factor alone could guide the metal towartds the green light at the end of the tunnel.
According to latest mining industry comment by Jennings Capital Inc, gold could be close to the end of the rout though continued price weakness is possible with an implied target gold price of about $1,080 an ounce.
The report said : We have examined this gold bear market compared to the previous ones during the past 40 years to have an understanding of how both the commodity and the equities could respond.
The weighted average historical duration of previous gold bear markets was 3.2 years with a weighted average price decline of 43%.
This suggests to us that we could be close to the end of the rout though continued price weakness is possible with an implied target gold price of about $1,080/oz (a further 11% decline).
We have also examined the widening gap between the commodity and equity valuations which ...