- Precious metal Gold surged almost 30% since the beginning of the year, reaching a new all-time high of $2,075.28 per ounce
- Gold suffered its worst crash since 2013 amid improved investor risk appetite
- Gold lost 5.3% of its value during Tuesday’s crash
- The fundamental backdrop remains supportive for the Gold bullish run
Gold’s record-breaking rally halted last week as it was interrupted by a sharp decline that brought the precious metal to its knees. Following the dramatic sell-off buyers have resurged and erased some of the previous week losses.
Speculations and worries that the violent sell-off can alter the long-term outlook of the precious metal Gold have sparked among some financial analysts on Wall Street.
“The precious metals complex was driven by a drop in rates, a steady increase in inflation expectations and a falling U.S. dollar. The rally is now giving up some of these gains as these drivers lose momentum,” said Bart Melek, market strategist at TD Securities – citing CNBC.
Most of the catalysts that fueled the rally in the precious metal gold are still at play, which is why the bulls are again challenging the big psychological number $2,000.