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GOLD TO BE VOLATILE

Gold has always been seen as a good investment be it physical or a commodity future for that matter. The commodity has mostly given great gains to the investors and we are seeing some major uptrend in the gold.

Gold has indeed outperformed not only broad-based indices but also sub-indices and most individual commodities over the last several years. In particular, as the chart below shows, the general commodity index has fallen since 2014. The gold commodity is a broad trading one and the federal reserve is the main factor affecting the gold commodity as this is the most valued natural thing and hence it is in the commodities market where it is inaccessible to the normal investors so that the flow is regulated by the reserve only and not by the trading markets that the people  trade and change every day. The average daily trading in the global gold market ranges between US$100bn and US$200bn a day. The trading makes up almost half of the federal reserve maybe because the federal has never disclosed the held amount of gold.

The gold has been affected by various factors but is stable that is not going to last long and the volatility in gold will change all the commodity and currency valuations that we have. We expect the market to get back in its normal state and everyone can be relaxed about the volatility of the gold