Great Shock in GOLD Price 金價大瀉

As the writer and most of the people remember, the metal price expecially the gold price has a sudden and sharply raising during the mid-April. Until the early May 2006, the price of gold has rised to 730.4 US. However, there is no continue support to this high price; the gold, silver and copper prices all drop together since then .
Until last wednesday, the gold price reached 540 US which is about 26% decrease from the highest price in this period.
Is it good to take this chance to buy some gold now?
Yes for those take it for long run, but NO for others, as fluctuation still occurs in metal prices in this period due to the inflation and interest rate matters. What's more, investors should not use the view of sharply raise during the last two month, to see the future's gold market. During April and early May, the raise of gold price is mainly due to the activities of some retirement and hedge Funds. But as interest rate is expected to rise and therefore US currency, most fund managers decide to use this reason or say excuse to take profit at the high point first. In coming short period(2-3 month), as the US may still raise the interest rate, the gold wold not be seen as tools for short run investment. And it is expected to float between 550 US and 580 US.
For long run, the writer think the gold price can return to 700 US level at the end of the year and even 800 US next year mainly due to the continuely great demand of gold in China and India. This year, 2006, is also a special good year for marriage in Chinese, therefore the price of gold in long run can be looked good.
(Other factors need to be considered: The inflation rate of US, the political problem of Iran and Iraq, the hedging activities of the hedge funds.)