Market Tips: Gold Is Overbought; Dollar to Stay Weak
Global stocks were lower on Thursday, with China's Shanghai Composite closing 3.6 percent lower, while gold hit another new record to $1,194.90 an ounce, as Debt problems in Dubai curbed investors' risk appetite.
Experts told CNBC investors have lost faith in the dollar and are therefore piling into gold. They see the dollar remaining weak for some time.
Overbuying in Gold
Gold is overbought, says Geoff Beeston, investment advisor at Lonsec. He advises investors to be cautious about chasing higher gold prices.
Losing Faith in Currencies
It is the loss of faith in currencies that is driving the price of gold higher, believes Matthew Kaleel, co-founder & portfolio manager at H3 Global Advisors.
How to Invest in the Recovery Phase
The dollar will probably continue to weaken against the euro and the yen over the medium term, says Paul Donovan, MD & deputy head of global economics at UBS. He tells CNBC how else investors can profit from the recovery.
More Upside Seen for Euro
The euro-dollar could hit $1.53 in three months' time, predicts Olivier Desbarres, director of FX strategy at Credit Suisse. He tells CNBC what is driving the euro's strength.
Dollar to Remain Weak
Expect the dollar to weaken over the next nine months, says Stuart Shrimpton, director of Intelligent Investments.
Dollar Run Over
The run in the greenback is over, for now, says Stephen Roberts chief economist, Australia Nomura.
Optimistic About US Markets
King Lip, portfolio manager at Baker Avenue Asset Management, remains optimistic on the U.S. markets for the rest of the year.
Fear of Market Sell-Off Seen
Investors moving into large-cap stocks reflect a fear of a market sell-off, says Akhi Kamkolkar, head of futures at Halifax Investments.
Commodity Prices Will Continue to Rise
Over the coming year, Stuart Shrimpton, director at Intelligent Investments, sees commodity prices edging up across the board.
Current Oil Prices are Surprisingly High
Current oil prices are surprisingly high, according to Jason Feer, senior VP & MD at Argus Media.
Short Play on Banks
There is a big short play that one could do on banks, notes Enzio von Pfeil, CEO of EconomicClock.com. He explains his investment strategy.
Eye on Chinese Banks
Chinese banks' capital ratios are now a focus of market attention, notes David Marshall, MD of financial institutions at Fitch Ratings. He sheds light on the Chinese banking industry.