Gold: weekly review
Many investors bought the metal given the growing demand for the safe-haven assets.
Last Thursday, the markets were concerned about the news that the Portuguese conglomerate Espirito Santo International delayed some of its debts payments. The longstanding concerns about the state of the European financial system returned to some investors.
In addition, the economic data pointed to a reduction in the French and Italian industrial production, while China’s export growth hasn’t met the experts’ expectations.
As a result, investors began buying “safe havens”, including the gold. At the same time there was a risky high-yielding currency and a stock indexes drop. The Gold has become a popular “safe haven” after the US earlier growth rates decrease fears, and the metal price continued to rise very active.
The level of 1331.00 probably will support the pair. However, a break below 1331.00 would pave the way to the strong support 1280.00-1300.00. The further breakout to the downside to the support around 1240.00 and 1200.00 looks unlikely. If gold price rises above 1331.00, it will continue going up to the next resistances at 1392.00 and 1433.00.