Gold price correction ‘has occurred’

<p>The correction in gold prices has been completed.</p>

Gold prices could be more stable in the coming weeks and months after specialists revealed that they believe the correction in the value of the commodity has been completed.

Commodities analysts at Deutsche Bank stated that even though the recent drop in the price of gold has not been close to the collapse in gold prices in the early 1980s, the situation is not the same.

They pointed out that in the 1980s, the US Federal Reserve tightened its monetary policy and this led to real US interest rates rising rapidly, reports City AM.

With the Fed expected to hold its current monetary policy as it stands until the US economic recovery is on a firmer footing, this does not appear likely to happen again.

"We doubt a repeat of such action and consequently view a large part of the gold price correction may be behind us," the analysts said.

The value of gold dipped to near three-year lows last month, but bounced back to recover a good chunk of the losses sustained so far in 2013.

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