Key elements of gold prices growth

Despite the continuous pressure on gold and other commodities, experts claim and perceive signs of recovery on the gold market. What are these signs?

Read the article and keep track of events!

Recently, gold hit a 3-week record recovering the lost ground. On August 12 gold prices were at $1,125 per ounce. Later, on August 20, the prices dropped to $1,111.45 per ounce. However, experts point out that gold prices expect positive growth in the near future.

In particular, the director of the large Canadian gold mining company Goldcorp, Chuck Jeannes, claimed that gold prices will not hover around $1100 for a long time. He pointed out that the current fluctuations are nothing to worry about.

Jeannes' confident comments are not empty words: recently GoldCorp started exploiting a new gold deposit which extraction will last nearly 10 years. As told by Jeannes, when gold prices fall the company reduces significantly the margin profit cutting corners of non-core expenses, and when the prices grow, the company's profit grows along.

The expert considers two of the most essential factors for the growth of gold prices are the deficit of physical gold in the global market and the growing demand in Asia.

Yet another factor not to be missed is the general opinion of big market players. The Bank of America Merill Lynch conducted a research which conclusion suggested that market players underappreciate gold, a similar result to that of 6 years ago.

The expectations of an interest rate hike by the U.S. Fed remains a key factor as it holds back investors to invest in gold.

However, not all gold price driving factors can be seen at first glance for usual players in the market, as they differ from the factors which influence other assets. Among the guessings of the factors that impede the growth of gold prices some include a possible manipulation aiming at supporting the US dollar.

Why do people continue to buy gold in spite of price changes? People understand that the decrease of gold prices will not only recover the lost ground, but surpass it quite significantly. The Global InterGold Online Gold Shop customers keep it in mind when they buy physical investment gold bars. Find more details by following the link:

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