Gold prices have appreciated strongly on the back of U.S. Dollar weakness and gold prices have rallued from levels around 986.70 on Oct 2 to reach a fresh all-tome high at 1,070.80 on Wednesday's European session.
According to James Moore, analyst at The Bullion Desk, Gold, given the circumstances, will remain bullish against the Dollar: "Given the weight of momentum entering the market and outlook for the dollar it is difficult to be anything but bullish towards gold and when combined with historically low interest rates and inflation concerns we remain bullish over the mid-to-longer term. "
Nevertheless, on the short-term, Moore, takes in account the possibility of a corrective decline: "However given the scale and pace of recent gains and with gold flirting with overbought territory on the charts the metal is in much need of consolidation/ correction to avoid a more substantial price drop."
