Gold feels a little less safe now after the dramatic sell-off a few weeks ago. On April 15 the price of gold fell about 14 percent in what was the biggest two day drop in three decades. Since then it has made up a lot of the ground again and is still considered a good investment, says Ole Hansen, Head of Commodity Strategy, Saxo Bank in a video about the precious metal. 

Inflation is very low which is not supportive for gold but data on the macro environment of late has been a bit disappointing. "This could potentially leave investors a little bit undecided on equities and they might return to gold as an alternative investment," says Ole 

In Saxo Bank's Outrageous Predictions published at the beginning of the year Ole said gold could go to USD 1,200/oz. The fact that this prediction eventuated already this year took him by surprise. The expectation was that gold prices would probably drop in 2014 and not already in 2013.

He does not expect another sell-off later this year, though trading up towards USD 2,000 is not on the cards. In a USD 1,200 to USD 2,000 range he sees gold closer to the lower end for some time yet.

TradingFloor.com has organised a Google+ Hangout that will discuss how gold has been performing over the past few weeks. The event will start on Thursday, May 2, at 16:00 CET (15:00 GMT), when the live video stream will automatically appear on TradingFloor.com, our Google+ page and on our YouTube channel. Be sure to ask your questions ahead of time. Participation is free.