LONDON (Commodity Online): It seems gold is heading for a perfect future as almost all incidents unraveling across the world in April and May months are helping the yellow metal gain.
If you take into consideration the recent developments like the Greece debt crisis, Spain and Portugal economic woes, the Euro situation, China's decision to control the realty sector and the May 7 verdict by India's Supreme Court in the Ambani gas row case, all of this have contributed to the further push of gold in global and India markets.
Decline in the value of the Euro, falling global stock markets, a temporarily strong US dollar, civil unrest in Greece also added to the glitter of gold.
On Friday, the spot price of silver traded anywhere from $17.48 to $18.65, a 6.6% range. Gold moved around in a $20 range and closed within 1% of setting a new all-time high close.
In fact, worried Europeans are flocking to buy physical gold. Dealers across Germany have been virtually cleaned out and inventories are not much better elsewhere in Europe. In the coming weeks, you won't get the yellow metal in the US also.
Stories of physical supply problems are now growing every day. The number of people who own paper gold or silver who are now trying to convert such contracts, accounts, shares, etc. into physical metal has soared.
Gold prices are expected to move up over the next few weeks, as growing concern about Greece and the euro increase demand for safe-haven investments.
A hung parliament in the UK also helped gold gain. The markets abhor uncertainty, but the hedge funds love it and will have a field day if this messy and uncertain political impasse is allowed to fester.
In times of turmoil, gold is always seen as a safe haven. It is considered attractive because it is an alternative store of value. Investors tend to buy gold when they feel defensive and have concerns about stock markets.