It is very difficult to predict whether people will perceive the drop in gold price as an opportunity for a bargain or a sign that gold is a risky investment. Since gold demand for both investments and (in part) jewellery are driven by speculation, the balance of these two conflicting market ideas will determine what is next for gold price.
My colleague Gregory Neilson recently shared his thoughts on the inflationary pressure that is affecting the price of gold, you can read his blog post on gold price here.
Read the First Blog Post in This Series: Who is Charlie Pollock?
Read Blog Post #2: The History of the High Gold Prices
Read Blog Post #3: Comparing Gold, Stocks and Commodities
Read Blog Post #4: Jewellery Demand for Physical Gold
Read Blog Post #5: Investment Demand For Gold
Read Blog Post #6: Gold Supply