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Analyst: Gold Going to $1100

The price of gold is already down 25 percent in seven months and after rallying back from it’s recent April plunge, it fell another 5 percent this week. Don Hays, founder and chief investment strategist at Hays Advisory Group believes that gold will drop another 25 percent, eventually landing at $1,100 per troy ounce.

According to Yahoo! finance, Hays said, “If you look back, when the price of gold started moving up, it’s almost perfectly synonymous with September 11, 2001. That’s when the fear really started rising,”

He believes that gold functions better as a fear index. As the world stabilizes, the price of gold drops.

“The terrorism effect obviously is starting to improve, democracy is starting to improve, the price of oil is coming down, so all of those things play into a much better (investment) environment for the next 10 to 15 years. That is what gold is telling us,” he says.

In early trading, Friday, Gold is down 0.75 percent while Dow Futures are up about 47 points.

Disclosure: At the time of this writing, Tim Parker had no position in gold or gold related ETFs.

[stock-tools exchange="NYSE" symbol="GLD" image_height="180" image_width="300"]

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