This essentially means that, as more people buy gold, the price goes up, in line with demand. It also means that there is no underlying rationale for the price of gold. Weakness in the dollar and inflation are among the factors likely to drive precious metal prices, David Lennox told CNBC's Street Signs Asia on Monday. Lennox said that it seems that everything is ready for the US dollar to go down, although it hasn't happened yet.
If the greenback weakens, it would be a boon for gold, he added. Geopolitical tensions between major military powers could also push gold prices sooner than expected, Lennox said. In particular, Russia's military presence along its border with Ukraine has been building up, and that is a focus point where it could quickly turn into something disastrous, he said. Do you have any confidential news? We want to hear from you.
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