According to Bart Melek of the Canadian bank TD Securities, the gold market will receive support from the weakening of the US currency, which in turn will be under pressure from the risk of rising inflation in the US.
He also added that the current rise in the price of gold was the result of rising inflation in the US. It is thanks to this that the precious metal has overcome the level of $ 1,800 per ounce. But it is too early for investors to rejoice, as gold has yet to prove its ability to gain a foothold above this mark for a long period of time. “In the current situation, one cannot be sure of anything until the end, but we expect the continuation of the small price rally in the gold market,” the analyst shared this opinion.
“The technical and fundamental improvements that we have recently been able to observe in the gold market are a sign that better times lie ahead of us,” says the expert. "Current and future stimulus measures in the US and elsewhere in the world are the factors driving up debt and inflation, and will therefore continue to drive the price of gold up to new record levels."