HSBC moves to neutral on gold as bubble deflates

HSBC Private Bank is moving its position from positive to neutral on gold and precious metals. H...

HSBC Private Bank is moving its position from positive to neutral on gold and precious metals. Head of global strategy Fredrik Nerbrand said gold’s position as a safe haven is quickly being eroded, declining 16.6% since 15 July and signalling the exit of speculative long positions. He said gold, without the restrictions of the supply/demand constraints some precious metals have, has formed a bubble, which is now deflating. He said: “Historically speculative bubbles in gold have burst with a decline of 35%, suggesting gold could move down to the $630 level from its recent peak of $976....