Slumping gold price seems primed for further fall
Market players say the yellow metal remains overvalued - the ratio to silver is at a 5-year high and to crude oil, a 17-month peak
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AS bad as the rout has been in gold this year, it keeps getting more expensive relative to silver. The ratio, now at the highest in five years, is of concern to gold investors because it may signal more declines.
"Gold is overvalued to silver," Yoni Jacobs, the chief investment strategist at Chart Prophet Capital, said on Wednesday in a telephone interview. "It looks like gold could fall more. People are realising it is not a good investment when the equity markets go up and as the dollar is getting stronger."
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