Gold won't fall below $1000/oz level ever again: Marc Faber

It has been a tumultuous phase for the markets globally in the recent past with major contractions in the private sector and huge stimulus packages. The question remains whether the markets are going to rally from here or is it bracing itself for a correction. Commenting on the same, Investment Guru Marc Faber says that the US economy did not respond well to stimulus packages. However, he adds, “The asset markets responded well to stimulus. The US Fed is keen to push the asset markets.”

On the much talked about issue of the dollar carry trade, Faber says, he is not sure if there is a huge dollar carry trade and believes that it may not short positions in the dollar.

Though he sees a dollar overhang, but doesn’t consider it to be a huge risk. “I would short dollar currently, but hold gold.” The metal has scaled USD 1,000 per ounce level with heavy volumes. However, Faber believes that it will not fall below USD 1,000 per ounce level ever again. He advises investors to diversify into precious metals and equities.