Gold started out great in the beginning of 2014, as it put on a good show right off the bat. Many investors are now lining up once again after last year’s bad run and the first quarter was already a big step forward for the precious metal indeed. What does the future hold for gold, however?
What Does The Future Hold For Gold?
The first quarter had a significant positive effect on the sentiment around gold. By the end of 2013 many analysts had enough of precious metals in general as they were down and out completely, gold included.
But that big drop made sure that bargain hunters came crawling out of the woodwork again, especially in the first quarter, with some satisfying results. You might think at this point that the next quarter will be another disappointment again, but that is not necessarily true.
We believe the opposite is true, actually, as the gold price demonstrated its resilience in the first quarter, and the odds are high that it will continue its trend. Different big investors had a second look at the gold price as well.
Considering the all-time high demand for physical gold and the big correction in gold last year, the turnaround of the first quarter was not so surprising. The stock market, moreover, is losing volume and stock investors are hesitating, which only adds to the positive picture for the precious metal. Ultimately, the fear of a further drop is visibly fading despite several investment banks trying to ruin the party.
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