— This is the script of CNBC's news report for China's CCTV on July 4, Thursday.
Welcome to CNBC Business Daily.
Gold prices saw a record decline in the last few months, down over 20%. But speaking to CNBC earlier in the week Dennis Gartman said that things for the yellow metal could start to turn around.
Have a listen.
[Sound on tape by Dennis Gartman The Gartman Letter: You had an outside reversal that you had absolute abject panic, throwing overboard of positions. You had the commercials on the future's market having their smallest net short position almost to the point of being net long that we've seen in many, many years. You had market vains bullish consensus number gotten to the lowest number that we've seen in several years and you had gold down 27%. And when you listen to television and you listen to the radio when you read the newspapers all you got were bearish implications for gold. That's the sort of circumstance that gives you a turnaround and i think you've had It.]
Gartman was not the only one optimistic on the gold trade. Here's another guest who thought the precious metal had more upside.
[Sound on tape by Anthem Blanchard, Ceo, Anthem Vault: I think that it's very very dangerous situation here for all of the central banks. They have to ensure that price deflation goes away, at the same time they have to be very very wary of starting a price inflation from monetary expansion because it is extremely difficult to get that cat back in the bag once it's out. 094729 So very precarious situation and very bullish for gold and silver.]
But not everyone seemed to agree. Some analysts told us that the bullion's function as a inflation hedge could wane soon. and that could hurt prices in the long run. Have a listen.
[Sound on tape by Mark Keenan, Cross Commodity Research Strategist, Societe Generale: We see $1200 for the end of this year, in terms of Q4 average. And frankly going forward year after year for up till 2017, we see about $50 coming off the average price per year - down to $1000 by 2017.]
[Sound on tape by Jay Richards, Investment Manager, GTL Capital Management: I think you're going to see more downside first. You know when several of the EU countries decided to sell their gold reserves that started the ball rolling. Perhaps QE had stimulated some of that and secondly, Goldman Sachs came out and said they didn't like gold anymore and on April 12 and then through the weekend on April 15, the gold drop 220 dollars. I don't think it's ready to pick itself up and go back up.]
Li Sixuan, from CNBC's Asia headquarters.