After the recent record-breaking decline, gold prices eventually started recovering from it. The recovery is fairly strong and confident. At this point, an ounce of gold costs $1470. The decline helped the bulls to re-enter long traders at a discount.
For example, the sales of gold coins in the USA are at the record level since 2009. At the same time, Indian jewelers are expanding their gold purchases. They have already increased them by 500%.
Meanwhile, according to the recent gold report published by the US Commodity Futures Trading Commission, hedge funds are betting on gold weakness. Therefore, the current recovery looks speculative. The current growth is the most rapid one in 15 months.
Some experts say that the current rally is natural while the recent collapse was provoked by major players.
Jim Rodgers, a famous commodity guru, says he will start buying gold if the price goes down to $1300/oz or lower. So far, there are no reasons to go bullish on gold.
The chart below, courtesy of Masterforex-V Academy, reflects the current state of affairs in the market of gold:
