According to a market expert, the recent fall in the value of the yellow precious metal to $1,622 per ounce was a "false decline." According to him, it was important that the price of gold subsequently not only returned to the level of 1675 US dollars, but also exceeded it. “This happens in the gold sector every time there is a big bottom,” Erfle said. “First there is a false move to get everyone out of the boat, and then when almost everyone is out, the price reverses.”
The key signal for investors, he said, will be the rise in the share price of mining company Newmont above $52. This will bring a wide range of investors back to the gold mining sector. In addition, he expects the price of gold to break through $1,800 an ounce, which will spark interest in the shares of small gold miners.
Whether these two events will materialize this year is unknown: “It will be very interesting to see how the price of gold reacts now, as the US dollar is depreciating again after its parabolic rise. I don't think the US dollar's rise is over, I think it's correcting now. In my opinion, if the US dollar rises again, gold will rise with it as a hedge against the crisis.”