Gold’s debt-driven rally

Gold could face sharp corrections if the market experiences a severe deflationary shock or a global liquidity crisis. — Reuters

GOLD prices have been on a roller-coaster ride since the Iran war broke out.

Instead of heading higher on geopolitical risks, gold turned lower toward the US$4,000-a-troy-ounce level before breaking out in August to trade at around US$4,600 at last look, up some 15% in a single month.