It is not possible to predict what the future holds for the price of gold, due to the fact the value of the precious metal is driven only by the sentiment of investors.
This is the view of Nik Stanojevic, of investment manager Brewin Dolphin, who stated there is no "fundamental" way to predict whether the commodity is going to rise or fall in value.
Speaking to the Daily Telegraph, Paul Kavanagh of Killik Capital explained how conditions were ideal for rising gold prices in the middle of the global financial downturn, but now this has eased, investors are less attracted by gold.
He highlighted the fact that the precious metal thrives in an "environment of negative real interest rates – when inflation is higher than interest rates".
According to Towry's head of investment Andrew Wilson, the recent sudden drop in the value of gold has taken a lot of investors by surprise.
He stated that the decrease in the commodity's value suggests there is "more going on than meets the eye.
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