Gold prices may be ready to rally again after investors reacted to a statement by the US Federal Reserve earlier this week.
Brien Lundin, editor of Gold Newsletter - one of the oldest and most respected precious metals and mining stock advisories in the world - said that conditions are such that the organization will not be able to begin any interest rate rises until next year.
"Gold broke decisively out of the trading range that had constrained it as investors came to realize that the Federal Reserve won't be able to begin a rate-hike campaign until 2009. [The Federal Reserve is] facing growing inflationary pressures, but unable to raise rates while economic conditions are so weak and with a national election so near," he told Market Watch.
He added it is likely that European interest rates are likely to rise before those in America, further building on a bullish atmosphere for gold prices.
Gold has yet to reach the $1,000 an ounce mark that it hit in March again.
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