Barclays’ Sarin: Stocks Could Be Next to Drop After Gold Plunge

Posted by Michael Kling: Money News

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Following the recent dramatic drop in gold prices, stocks may be next to plunge, warns Dhiren Sarin, chief technical strategist at Barclays, as the plunge in gold prices is a sign that markets have lost faith in central banks’ quantitative easing efforts.

“The breakdown in gold, in euros and U.S. dollars, tells us that some of the belief in quantitative easing measures has faded, and policies by central banks aren’t flowing through to investors,” Sarin told CNBC. “The asset class most vulnerable for a selloff after commodities is likely equities.” 

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