Gold price rise ‘will not be sustained’

<p>The price of gold could be dipping soon.</p>

Gold stocks could be set for a fall, with the precious metal currently hovering close to a two-week high.

According to Chen Min, an analyst at Jinrui Futures in the southern Chinese city of Shenzhen, there are downward pulls on gold and this means the recent gains cannot be sustained.

Speaking to Reuters, the specialist explained the "price rise yesterday will not sustain as there was no major change in fundamentals".

Germany's Bundesbank has also said the euro zone crisis is no closer to an end and this is providing a weight on the price of gold.

It revealed that it has set aside billions more euros against what it deems risky moves from the European Central Bank.

An all-important policy meeting of the Federal Reserve set to be held next week (March 19th and 20th) is expected to have an impact on the price of gold.

Nomura recently predicted that there will be a dip in the value of the commodity in the next 12 months.

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