What Next For Gold?

Despite elevated prices, faster-than-expected economic expansion is driving domestic demand for gold

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For me, gold is always a subject that I keep close to my heart. And I always find it amusing to see how the gold market navigates through the various phases of an economic cycle. A nuanced reading will show that many a time gold market behaviour puts conventional economic wisdom to test by taking a different course.

For the sake of context, economic theory has it that the demand for any goods or for that matter services is a function of supply and demand. The market arrives at an equilibrium when the demand and supply curves intersect at a particular price point which is considered as optimum for both producers and suppliers. However, a closer scrutiny of gold market behaviour may prove this hypothesis null and void.