Gold has taken a slight hit easing for a second session today as the dollar bounces back from earlier losses. Despite the rebound from the dollar gold hasn’t lost too much momentum holding near to the recent 4 week highs.
Global worry bears down on investors.
Gold has in recent weeks hit a high of $1,237 before settling down to a modest $1,229. This morning fears have re surfaced over the concerns of the strength of the global economy as equities take a hit.
Investors are also concerned about the fragile economies effect of the US fiscal policies further boosting gold’s safe haven and wealth preservation status.
Over the pond European economic data remains fragile which may lend further support to gold.
Germany has significantly lowered their growth forecasts for 2014/15 with worse than expected industrial production results and lower export figures.
Germany: Europes Power House in Trouble?
As Germany is Europe’s largest economy concerns may harbor over what this could mean for the rest of the EU.
Gold may also gain momentum as the Indian festival and wedding season comes underway.
Indian Diwali Festival Celebrating Light
For more information: http://in.reuters.com/article/2014/10/15/markets-precious-idINKCN0I407920141015?rpc=401