Fxstreet: "We are entering a new dynamic for gold bullion, as the asset purchase program by the Federal Reserve is likely to end over the next year, which will prompt higher interest rates. Higher interest rates are negative for gold bullion in an environment of low inflation, since the cost to carry gold bullion increases. But we don’t know for sure when interest rates will rise or if inflation will remain low. Historically, the Fed has been behind the curve, and I think there is a chance that inflation will soon begin to accelerate much faster than people are expecting.
Over the short term, I do think that gold bullion might have hit bottom and could move up into the $1,400 to $1,500 area. At this point, the risk to reward as an investment opportunity for gold bullion looks favorable."
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