Wednesday, 4 July 2012
Gold Investments Affected by Uncertainty in Europe and U.S.A
While economic turmoil usually drives bullion higher, gold prices have mirrored riskier assets since late last year due to tight credit conditions caused by the Euro zone debt crisis. And, as long as uncertainty in Europe continues, gold could stay under pressure, despite the expected easing from central banks. It is important to note however, that even though investors are questioning gold, and experts have lowered their gold price forecasts for 2012; new estimates are still above current gold prices.
We should also remember that investors saw this same interruption from April to July of last year, when gold consistently hovered around $1,500, and even dropped in the $1,400s; on a few occasions. With that being said, investors should pick their spots over the next six months, and look forward to gold moving higher; in the last half of the year.