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Nouriel Roubini talks currency wars and price of gold

  • Thursday, December 04 2014 @ 10:30 AM EST
  • Views: 3,016
Gold Aaron Task from Yahoo Finance interviewed economist and NYU professor Nouriel Roubini to talk about his views on the defacto "currency wars" that are being undertaken by several countries, all trying to devalue their currencies to gain an export advantage. Roubini talks about the Bank of Japan's actions in particular and also comments on where he sees the price of gold heading. Hint: he sees gold going lower even as central bankers try to outdo each other with currency debasement via interest rate cuts or money printing.

On the price of gold, Roubini told Yahoo that he sees it going lower as the US dollar will continue to increase in value and bring deflation to several (financial?) sectors.

"Even with currency wars, gold will remain weak, says Roubini. “For now the Fed is not easing, and the dollar is strengthening,” he says. Gold is a hedge against inflation, but Roubini believes there are many assets now that are better and that can provide an income, like real estate, equities and credit. Gold can only provide capital gains. “Real rates are going to go higher so all of the main factors regarding gold indicate that gold will go down.” He says the rate will near $1000 per ounce by the end of 2015. It currently hovers at around $1200 per ounce."

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