Economic Commentary, In Focus

Gold is poised to appreciate over $1500 per ounce soon in view of the massive bailouts by Obama administration and buying of worthless debt by the Federal Reserve. investors waiting for an opportunity to buy gold as the gold price dropped under $1,300 doubled up in the opportunity. The price began to rise again due to heavy demand.

The prospect of a rising price of gold this year due to the slow recovery of US economy and Europe’s sovereign-debt crisis boosted the metal’s allure.

Experts predicted that the gold price would be up 19 per cent against last year. The major cause is that recovery of global economy is slower than announced. Therefore, gold will be an attractive market for investors. Capital investment in gold is poised to be higher than other markets such as foreign currency market, stock market and real state.

If the US economy recovers and the EU economy is stable, both an unlikely occurrence, then the gold price will ease off.