In the past two days, gold has been trading near maximums for the first time since mid-July.
Currently, the precious metal rate is growing largely due to the correction in stock markets.
Today, many experts are interested in the question of how the situation will develop further.
"Gold usually rises in price during a correction in the stock market, but this is not always the case. During such periods, investors tend to view precious metals primarily as a defensive asset," said analysts at the American bank Wells Fargo.
"There is a possibility that gold may fall in price by $ 100 per ounce if securities return to growth," they added.
According to them, the precious metal is in a long-term "bearish" trend, which began in 2011, after quotations reached a record high of $ 1,900 per ounce.
"Today, there is an oversupply in the gold market. You can't say about the demand for precious metal, which during the bull trend, from 2001 to 2011, was noticeably higher than now, because almost every investor wanted to have gold," representatives of the financial institute noted.
They expect that over the next 3-5 years, the precious metal rate will be in the range of $ 1050-1350 per 1 ounce.
The material has been provided by InstaForex Company - www.instaforex.com