Gold could test $1,400 to $1,500 says Marc Faber, aka 'Dr. Doom'

MarketWatch
May. 09, 2012

May 4, 2011 - “Dr. Doom” is feeling some pain about gold. Marc Faber, publisher of “The Gloom Boom & Doom Report,” said gold prices could test the $1,400- to $1,500-an-ounce level sooner than not.

“Gold may not perform very well in the near future,” Faber said, venturing that the price “probably overshot” when it topped $1,900 last August. Gold GCM2 -0.69% was higher in Friday trading, as was the exchange-traded SPDR Gold Trust ETF GLD -0.90% .

“The gold market has performed so well,” Faber said, “we could have some setback.”

But Faber added that the doctor is “in” when it comes to his gloomy outlook for U.S. stocks and sovereign debt.

U.S. stocks, Faber said, “may correct more than what people expect.” Market leadership is narrowing, as happens in poor quality, mature rallies, he noted.

A 20% downturn for the U.S. market in coming months wouldn’t be surprising, Faber said.

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