Sensing a weak US dollar, the price of Gold spiked instantly. The US dollar index has fallen to 90.75. According to the professional investors the Gold generally pullbacks in a short term perspective and this presents good buying opportunities for the investor.
The seasoned investors and analysts are also pretty sure that the Gold’s bullish behavior will still continue and Gold might hit new high prices going forward. The market analysts also say that the slowing global economy due to the failed central bank policies will also provide fuel for the proverbial fire and the investors and other financial institutions will keep putting in more and more money into the market in a hope to recharge the economies globally. Not only Gold, but also Silver is poised for a good growth in terms of prices as per the market analysts.
Gold has bounced back as of now and so has silver. Gold was up by approximately 1% and the Silver was up by approximately 2%. Investors are seeking hard assets amidst the news of falling dollar and this has actually fuelled the demand and hence the increase has been witnessed. As Gold is highly sensitive to the rising or falling price of the US dollar, so these gains in the prices of Gold are being termed as an “Opportunity Cost.” With no other major economic indicators or geopolitical indicators, the only factor which is visible for the fluctuation in the prices of Gold and Silver is the US dollar.
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