Though the past year hasn't been terribly exciting for the yellowish metal, the next year will be, Michael Fowler with Loewen, Ondaatje, McCutcheon Ltd told the news source. He predicted the significant driver for gold futures' advance beyond that threshold is the weakening dollar.
"Gold essentially reacts to monetary liquidity and to the concept of depreciating currencies around the world," he told the news source in mid August. "Looking at gold in terms of euros or some of the other currencies, it's done quite well. It just hasn't performed in terms of U.S. dollars. The thing that I see on the horizon is potentially a weakness in the U.S. dollar. This could come about from the U.S. having to raise its debt ceiling, or it could have something to do with the Federal Reserve coming up with Quantitative Easing 3, which could happen in the short term and probably within the next six months."
The record price for gold is $1,923.70 per troy ounce as established on September 7 of last year.
Reuters reports the precious metal might be poised to climb in the near future as the central bank of the U.S. is set to purchase more debt.
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