Have the Drivers of Gold Prices Now Changed?
Investors in gold are currently wondering what has happened to the bullish trend of gold prices after the precious metal reached record highs in January above $5,500 an ounce and has since struggled to move past the $4,500 mark. What has changed, and should investors expect further pullbacks in the price of bullion? To understand what is happening, we need to take a look back at gold’s price behavior in the past. Generally speaking, every major rally in the past has been followed by a substantial retreat. For example, in late 2008, the price of gold hovered around $698 an…