Though gold is considered to be a secure investment, a hedge against inflation, it seems to be moving away from the traditional definition. The price today, according to gold investment experts, is certainly overpriced. Although it is far away from the 1970s b
ubble rate, it is heading in the same direction.
Gluskin Sheff’s Chief Economist, David Rosenberg, said the gold is over-purchased in short term. He informed that the price could reach to $1,130 in few days. On Friday closing, it was $1,229.
In this bull market, however, he predicts that the gold price could reach $3,000 per ounce. There are several factors that are driving the gold price these days, other than inflation. He expects the rally to continue even in case of extended inflation. But of it plunges below $1,200 this week, it will definitely breach $1,000 mark.
