Gold Bearish for 2013

Online, April 15, 2013 (Newswire.com) - As the US economy strengthens and markets continue to rally, the outlook for gold and precious metals is beginning to look bleak. Gold has plummeted more than 20% since the summer of 2011, and gold for June delivery on the Comex in New York fell to $1501 last Friday. The close was the lowest since July 2011 and more than 20% off the high reached in August of the same year.

Gold fell as low as $1476.10 in after-hours trading, and Friday's selling looked like a panic set off by a 0.4% fall in retail sales for March. Other commodities including silver, platinum, copper and crude also fell sharply Friday.

For the past decade, gold has been a reliable winner, surged on by its allure as a safe haven investment during times of uncertainty. The metal surged more than 550% between the end of 1999 and its peak in the summer of 2011.

Gold is down nearly 6% in April and 10.4% for the year. This decline has come as the Dow and S&P 500 hit record highs on signs of US economic growth. As investors regain confidence in stocks, many are reallocating their portfolios decreasing their exposure to gold and precious metals.

A number of analysts are suggesting that gold will be pressured for the foreseeable future, and it is likely that the slide will continue.

Sonata Financial predicts that as confidence in gold decreases, sell-offs will continue to pressure the metal which could dip as low as $1350 per ounce in 2013.