Gold Finds Floor Amid Ongoing Market Volatility
Gold has had a tough time finding its footing this year, but it may finally be hitting a floor. After a recent bout of fits and starts, gold prices recorded an up week, with a net gain of +0.8% by the end of last week.
This is a welcome respite from the recent volatility, but experts are cautioning against getting too excited just yet. Fair Value, a measure used to determine reasonable gold valuation, remains below current prices, and it could take some time for the two to converge.
One reason for optimism is that fair value has been rising steadily over the long haul, and it often takes years for gold prices to catch up. Since President Nixon abolished the Gold Standard in 1971, gold prices have typically trailed fair value before eventually surpassing it.