Investors in gold should not be put off by the pullback that the market has seen in recent weeks, according to one analyst.
According to Daniel Hynes, metals strategist at Merrill Lynch, the slowdown is to be expected after the meteoric price rises seen in March, when gold hit $1,000 an ounce, reports Reuters.
Mr Hynes said that he expects the consolidation to last for a few months, after which he said that it could rise again.
"After such a good run, a lot of people took the opportunity to liquidate, but the general trend would be for rising prices in the medium to long-term," he said, according to Reuters.
Many investors are optimistic that the current volatility in the oil market could spur gold prices onwards, as the strikes at a British refinery and worldwide fears of a shortage pushed oil up to $120 (£60) a barrel today (April 28th).
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