Analysts are still trying to figure out what gold will do next. It does not seem like the precious metal can get a break, and the long-awaited recovery has still not shown its face. Uncertainty has increased, as a consequence, and people can only guess what’s coming.
Precious metal prices did recover a bit last week, although time proved that it was only temporary. Analysts pointed to a slightly weaker dollar as the cause; we all know that a weaker dollar is synonymous with a great environment for gold.
Meanwhile the dollar has stabilized more or less, however, and the euro as well. It is generally assumed that the dollar will continue to gain on the euro, moreover, which is bad news for gold and any precious metal investor.
The Gold Price Is Influenced By Many Factors
But there are other factors at play, among which is the economy. Investors have adjusted their expectations with regards to when interest rates will be raised by the Fed (not soon). Finally, the oil price stabilized last week and continued to be stable this week.
These factors supported the gold price, which increased by 3% since last week Thursday. Despite the positive developments described above, many analysts believe that the revival is only temporary and they are not counting on a comeback.
If the dollar remains strong and the interest rates are raised within the foreseeable future, the gold price will suffer without a doubt. That is a very short-term perspective, however, as in the long term gold looks better than ever.
