The connection between gold and other monetary forms is evident from the available long-term charts. The long-term charts reflect that one performs better than the other, until the other tries to match up. However, let us consider the present scenario that is the US monetary base expansion from the time when the financial slump hit in 2008.
As the Fed has announced “QEternity,” it can be concluded that the monetary base expansion will persist. As a matter of fact, it the growth continues till the end of January 2014, there is a possibility that the price of gold will be approximately $2,300 by then. That would be a rise of 30 percent within 1 year and 3 months.
By the end of 2014, the average gold price could be $2,300 an ounce which is more than 40 percent as compared to the current prices.
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