Chief Economist At Samoyed Cloud Technology Explains Why Gold Prices Have Soared, Citing Three Drivers

What is the driver of recent gold price spike? Zheng Lei, chief economist of Samoyed Cloud Technology Group, said that there are three main driving foreces for the rebund of gold prices: one is the expectation of continued inflation; the other is the inverse relationship between the price of gold and the U.S. dollar index; the third is risk aversion, especially in the wake of European and US banking crisis. The demand for safe haven driven the price of gold to rise rapidly in a short period of time.