“I don’t think there is a bubble yet in gold”, Mark OBryne, Goldcore

Gold price is on a run ever since the beginning of this year. It went up to 2,000 within a few months. But for the past few days we have seen a sharp decline in this metal’s price.

There are so many reasons behind this; Inflation rates, geopolitical environment and change in interest rates.

There was a very massive movement within a short span of time. But later gold saw a sharp decline and people are expecting a pullback.

The financial, economic and geopolitical risks are major drivers of the gold price. The uncertainties related to the pandemic also drove investors’ attention towards this yellow metal.

 Apart from that central banks and supply demand ratios also have huge influence in the price changes.

“The pandemic and lockdowns are really affecting the environment.” Says Mark O’Byrne, GoldCore Research Director.

“The US debt before the pandemic was around 23 trillion. And it has been increased by 3.5 trillion since February 2020.” He says

Will gold price decrease to $1,700?

Mark O’Byrne says that there are possibilities of a price decline. “It is possible. I mean the resistance was $1700 to $1800, and they can gravitate to these levels.”

And he says that there are no safe bubbles created in the gold market till now. “I don’t think there is a bubble yet in the gold market yet.” 

Gold is an inflation hedge and provides a balance in portfolio diversification. It has been the best alternative to reduce potential risks.

But, even if this metal is considered as a safe haven asset in portfolios, chances of price decrease might give an alternate opinion. And there are chances of price going down from $2,000 to $1,700.

Check out spot gold prices in your local currency.

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