The recent pullback, or slam down in the gold price over the past two weeks has done little to stop the demand for gold... as seen by the huge buying of physical metal, as well as ETF paper in the period following gold going down to $1260 from $1330. And many analysts concur that the manipulated smash in the gold spot price will only continue to fuel this demand, and bring the price to over $1400 before the end of the year.
Gold prices are on the move again, settling at $1,260 per ounce at market close on Monday, according to Apmex.
That's after gold prices fell 5% last week, the largest decline in the metal of Midas since 2013. "Gold prices are quite appealing after the recent correction," notes Richard Xu, portfolio manager at China-based HuaAn Gold. "In China, what we see today is that there is some demand to buy gold following its dip."
Former U.S. Congressman Ron Paul concurred with that assessment in an appearance on CNBC last week. A healthy economy "will be fundamentally good for gold," Paul said.
Paul says that an ongoing low-interest rate policy by the Federal Reserve will boost gold prices and that the volatile U.S. presidential race, no matter which candidate emerges victorious, won't substantially impact precious metal prices. - The Street