Gold prices have been languishing at lows. Investors who are buying gold now or gold-related stocks do so mainly as they anticipate that gold prices will increase over time. There has often been an oft-cited correlationship between the US dollar and gold and hence if the US Federal Reserves is to increase its interest rate, that will provide a catalyst for the US dollar to strengthen and perhaps the measure will not boost the price of Gold.
Gold is a commodity and as a commodity, prices are shaped by the overall forces of supply and demand. The world needs gold and that’s for sure. But if we think of it, gold is not really a limited supply of commodity, at least for now, since we have mining companies all over the world, excavating and mining gold, increasing the supply of gold in the world. Investors who are investing in gold ......