Some trade analysts have advised that although the last couple of days have seen a slowing down of prices for Gold, but the market would largely remain bullish as we move forward. The main driver for driving the price of Gold has been the same from the past few weeks –Britain’s decision to leave EU. The decision and re-decision of Britain in this matter is only making the market more and more volatile. The further volatility of Gold will only be determined by the outcome of Brexit. The medium and long-term projections look promising but the short-term forecast remains turbulent. The risk assets like Gold also had a very good run up until now but the future, for now, is uncertain. The world economy as of present is very fragile and the world supply chains have become extremely complex. This is also one of the contributing factors in the fact that there is so much uncertainty in the financial markets.
DOW has also surged around more than 100 points over the last week. Investors are also saying that they are bullish on the investment of Gold because they expect the monetary policy of federal banks to tighten.
But it is very safe to assume that commodities have outshone other investments for now.