Gold is soaring – and the upswing isn’t over yet

The price of gold has risen 240% since the bull run began 6 years ago, and the fundamentals continue to look encouraging.

"Gold is out of the box," says Lawrence Williams on Mineweb. It has leapt by around 32% over the past three months, and last week almost hit its 1980 record of $850. Since the bull run began six years ago, it is up 240%. Market conditions have created a "perfect storm" for gold, says Ross Norman of TheBullionDesk.

The main driver has been dollar weakness; as Bloomberg.com notes, gold has had a correlation of 0.77 with the euro-dollar exchange rate over the past month (a correlation of 1 would imply that the two moved in lockstep).

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