CNBC reported that a disappointment in the decision reached by the European Central Bank at their next meeting could cause the price of gold to fall as much as 10%, down from a near six-month high of almost $1,700 an ounce.
As quoted in the report:
Trading close to key resistance level $1,700 an ounce, gold prices have had a bull run over the past one month, rising 5.5 percent, on expectations of monetary easing by both the U.S. Federal Reserve and the European Central Bank (ECB).
Warren Gilman, CEO of research firm CEF Holdings, commented:
I’m expecting more rhetoric and little in the way of concrete action. The fall in gold could happen as quickly as this week, as we start to see Europe hasn’t been sorting itself out and the solution to solving the debt crisis is not near.