Gold touched US$1533 an ounce yesterday and closed at US$1630 an ounce with a ‐0.77%
change.
It touched US$1663 an ounce as investors realized that the Greece debt crisis is not going to
be solved anytime soon; in fact speculators consider it to be on the brink of a default.
However, investors are in a frenzy witnessing the augmenting dollar against the Euro, which
is reducing gold’s demand as an alternative investment to dollar and therefore want to
realize as much cash as possible by selling bullion and move towards Treasuries.
We expect gold to dwindle in short term on account of dubious investors, which may cause
the metal to touch the US$1533 low once again. However, it appears that the uncertainty of
Euro zone debt resolution is bringing investors a bit closer to gold which is maintaining its
prices above the support level of US$1583 an ounce for now. The support level of US$1648 is
very weak and the metal appears to break this level time and again in daily trading.
Furthermore, gold is expected to fall in the short term if any news related to the efforts to
resolve the Greece debt issue, surfaces.
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