Gold prices should soon begin to respond to the rocketing crude oil prices seen recently and could go above their previous high of $1,000 an ounce.
Peter Cooper, consultant editor of AME Info has said that since oil and gold prices usually operate in tandem, gold prices could soon gain an extra digit in the coming months.
He quotes veteran trader Jim Sinclair as saying that, while gold could take another two attempts to clear $1,000 again, it will happen and could then gain as much as $300 on top.
Mr Cooper also adds that the consolidation seen recently was most likely a temporary situation.
"What brought the precious metals off their March peak was a resurgent US dollar. But the dollar has been looking weaker over the past few days and this was likely a false rally," he said.
Earlier this week, it was reported that demand and gold buying is increasing from developing countries such as China and Vietnam.
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