An increase of the gold price in the long term is expected

An increase of the gold price in the long term is expected to be the long-term outcome of recently released positive US economic data, after its momentary contribution to the volatility of the gold price.

Besides Fed policies, analysts also list the US presidential election process as a source for gold prices volatility for now. 

1.The released Fed employment stats seem to contradict the Goldman Sachs predictions.

2.After the $40/ oz. fall on March 14 (somewhat reminding of the $110/ oz. fall occurring abruptly in February in one day), gold price started recovering this week.

3. The global circumstances to which the Feds already answered with two rounds of quantitative easing are still in action in 2012. 

4. The need for "continued accommodative policies" mentioned in the speech was assumed in the markets as a sign for quantitative easing measures possibly coming up.

5.A new surge of liquidity in the market would probably trigger another increase of the gold price, as well as the fulfillment of Goldman Sachs analysts' predictions.

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