Gold: Only half way to the bottom?

The yellow metal has fallen out of favour with investors, but a bigger price drop may still be in store.

Summary: Gold was undoubtedly the place to be back in 2007 when investors clustered to the yellow metal as an insurance policy and its price soared. But times have changed, and with global economic conditions improving, interest rates set to rise and the US dollar strengthening, investors will quickly rethink their investment strategies.

Key take-out: The gold price could fall another 25% to less than $US1,000 an ounce as it loses its appeal as an asset of last resort in a world where interest rates are widely expected to rise.

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