Can Gold Sustain The Bull Run?

Gold Investing News reports on the question of gold sustaining a bull run.

What has brought on this turmoil? To understand this better, let’s take a look at the varied reasons being bandied around.

* The weak US dollar has been a major driver of this year’s surge in the price of gold. However, the currency has recently been showing signs of stabilizing, and could be about to turn upward.

* Risk aversion is gradually returning to pre-crisis levels and inflation fears should abate any time soon.

* The recovery from the deep economic crisis has been fast because of the stimulus measures backed by governments. It may not be sustainable in the long-term.

While many analysts suggest demand for gold would wane in the coming months due to the three factors outlined above, a new report from National Bank Financial Group has also given a contrarian view on the world’s most popular precious metal.

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