Fears of the euro zone falling apart keep gold near its record high
The overwhelming Greek debt crisis and fears of it spreading into numerous other EU countries have been catching the headlines. The fear did not end there, as it extended further into speculation over the euro area breakup which extended the sell-off for the single currency. These fears have made the euro extremely undesirable forcing it into a volatile bearish wave against the US dollar.
Furthermore, the fact that this debt crisis in Greece has been described as the worse debt crisis the EU and world has ever faced since the Great Depression and following the deepest and longest economic recession witnessed since World War II. This alongside fears regarding the United Kingdom's policy and coalition government for the first time since 1945, as well as worries regarding further Chinese monetary tightening that are expected to add more tensions in financial markets.
As for the shiny gold metal, last Friday it managed to touch levels around 41217.00 per ounce receding after achieving its highest around $1249.00 per ounce. At the same time, we see that gold returned to gain and closed around $1231.40 per ounce slightly dropping by 0.10%. Meanwhile, the plunge witnessed was met with strong demand pushing the precious metal to return to trade around its historically high levels. Today, as of 02:32 EST gold was trading around $1237.60 per ounce, making up for last Friday's losses higher by 0.50%.
On the other hand, silver and platinum today and last Friday have been trading with a downside bias; completely opposed to gold's tendencies. Last Friday, silver and platinum plunged once again by 0.78%; where silver it currently trading around $19.19 per ounce, while platinum also fell by 0.70% today to stabilize around $1705.00 per ounce.
In Asia, investors are leaning today towards reaping profits and disregarding investment assets that are linked to global economic recovery. However, the major fall Asian markets witnessed alongside oil prices, all point out that traders in global markets are predicting the worst regarding the European debt crisis, as well as economic developments in world economies; thus, providing impetus for investors to head towards gold and shy away from silver and platinum.
Meanwhile, crude prices today plummeted below $70.00 per barrel, but it did not demand on gold as it currently witnesses major speculations from numerous sides around the world. The effects are clearly visible on silver and platinum, but still remain limited.
Dear reader, as previously mentioned gold is stable around its highest levels recorded; where we expect more record breaking highs in the horizon above $1300.00 per ounce. In the meantime, we also expect bearish corrections from time to time with major fluctuations, alongside the dollar's movement that still is still surging against its major counterparts unlike oil which continues to tumble.