Well, gold is currently riding a new wave with steady daily gains over the last 4 weeks. How long will this new inclination last and could it break the $1,400.00 per ounce, with this current streak of steady gains.
Back in April 2013, gold had a huge decline, corrected itself, and then started another larger decline until recently when it started to post daily gains.
What is driving the price of gold again, not really sure that there are many logical answers on why gold is behaving this way. Whenever markets perform, people are always looking for some logical reasons for why it is happening.
The economy has certainly played into why gold is rising, with the U.S government and its multi-trillion-dollar deficits and unfunded liabilities, will never recover without increase taxes and painful austerity measures.
Fear is always an obstacle that started with Iceland and Greece that became an economic burden that spread across the globe, like a fire out of control. With the winds of a possible war that continue to howl across the middle East, Asia, and other countries, that will have a huge cost for American blood and treasure.
With the lowest U.S. interest rates in history, is definitely a weakness for the U.S. dollar and the long-term inflationary pressures from the Federal Reserve dropping trillions of dollars into the economy making it a very favorable time to invest in gold and many other tangible assets.
As major central banks become buyers and not sellers in China, Russia and India there certainly will be a demand for gold once again. Keep in mind that Beijing has been stocking up on gold and divest itself from the paper currency and encouraging it's citizen to invest in gold.
Due to some of the above factors collectively know as financial repression - gold has emerged as one of the best options to store value and even generate returns on investments for emerging market consumers.
Demand from central banks and many developed countries might be very far from becoming totally saturated, which provides potential another leg up for gold investors to think about
All the Best,
Joseph F. Botelho One Gram at a Time
"Pay Yourself First Because the #Economy that Matters Most... is the One in Your Own #Home" https://t.co/wo7XWWjaFZ pic.twitter.com/VSVAtkJ6El— Joseph Botelho (@jfbmarketing) January 19, 2016