Gold continues its bullish crusade
Gold was followed on the upward path by silver and platinum yesterday. Today however, gold has resumed its northern course while silver has moved in the opposite direction. Investors demand gold for various reasons, but whatever the motive, gold is feeding on this bullish behavior. Consumption demand on gold has dropped, but the yellow metal has nonetheless been ascending, backed by safe haven and alternative investment demand against fluctuations and uncertainty.
Emerging and Asian countries' efforts in supporting the recovering Global economy are still marred by the European debt crisis and weak consumption. For this reason confidence in the markets is still shaky, as uncertainty still fills the air.
Gold is assailing new heights today as it did yesterday with the company of silver and platinum. Gold has risen 0.35% to 1220.40 while platinum is also on the high note gaining 0.13% and climbing to 1561.00. Silver, on the other hand, has opposed the latter by declining 0.16% to a current 18.53 as of 02:43 EST.
Precious metals, and especially gold, are used as a safe haven against depreciating currencies. From another perspective, rising confidence pulls liquidity into gold as an alternative demand due to a certain level of uncertainty still lingering in the markets.
Fundamental are still aiding gold and other precious metals, while corrections and fluctuations will not be excluded from the current uptrend that is expected to remain unchanged until new economic data is released, which is unlikely in the near future.