Machine Learning

Some of the bullish factors that drive the gold price are based on the fact that gold is an alternative asset class Gold can be a hedge against currency risk, and a hedge against inflation Gold is also seen as a safe haven asset Gold is a liquid asset, i e it can be sold for fiat currency, at a price that is reasonable and readily available These factors have historically driven the gold price In recent years, the price of gold has been more closely correlated with the price of oil The price of gold has been closely tracking the price of oil for the last decade It is clear that the gold price is primarily driven by the price of oil This brings us to the key question Why will financial markets react badly to gold sell offs? We are in the midst of a geopolitical crisis The price of gold is being supported by the risk of a war in the Middle East Western nations are bombing the Middle East, in an effort to slow the advance of ISIS There is an oversupply of oil. Once the oversupply is realized by f