However, the continued enthusiasm for metals can be tied to a combination of devaluation of the Greenback and hopes that western recessions are bottoming. The deteriorating U.S. Dollar is an element that will have to be weighed against the demand picture for the next decade, note traders.

They add that given the massive stimulus and quantitative easing that’s gone into the market, gold could perform fairly well. Serious monetary inflation would eventually result in price inflation, and when that happens, it’s positive for gold, state analysts. If fear and inflation win out, the gold price will continue to rise: some predict a volatile uptrend through the $1,200 mark over the next few years.

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