There is a decline in gold price in the current month and last month all of us notice that, where gold price approached the levels of $1350 USD/Ounce of gold. While the highest price recorded in Sep 2011 at $1925 USD/ Ounce. a question where asked a lot, where are gold price headed and whether the present time is the right time to invest in gold or not ?
There are many changes in the investment strategies. In which gold price at that moment watch a lot of fluctuate. We also had witnessed that gold price has declined during the year and a half significant decline from $1926 USD/ Ounce to $1360 USD/Ounce, a significant for the reduction of gold.
What are the reasons pushed gold price down?
The gold market at the moment are affected by two types of trends that affect gold price in a direct way and two of the hand. A sharp rise in the actual buying gold by consumers, on the other hand the biggest increase in sales by investors through the liquidation of investment funds by selling gold assets.
The actual purchase of gold supported by a big markets namely India and China, especially during the last month, in addition to the strainers gold was operating at full capacity around the clock, but with lower support for gold price at $1525 USD/Ounce this decline affect the demand for buying from investors as investors in the gold sector went with selling about 180 tons of gold through ETFs in the first quarter of this year, or about $ 9.3 billion worth of the precious metal.
What we are witnessing today is that large liquidity among investors because of the policies of central banks, with registration in the stock markets all over the world, increase heading of investors toward the stock market. investors do this move as a fast move to gain profit in the current circumstances of the global market. But some indicators predict that this trend will end soon.
In addition to the price of gold is currently under pressure from currency movements and foreign exchange market where the price of the U.S. dollar and the euro record a rise against the yen, and this reduces the appetite of investors to buy gold. Therefore, the current environment is very difficult for the gold market.
Is it a good time to invest in Gold?
Gerard Schubert says that there is an expectation that gold price new ranges will be between $1500 to 1600 USD/Ounce of gold, which is supported by the cost of the gold extraction process, which is equal to $ 1300 USD/Ounce of gold , so we are approaching a normal level for the price of gold. We could see a slowdown in production, but we expect to see new deals for gold and encouraging during a short period of time. Frankly, I can say that i agree with this theri