The gold contract for June delivery recently spiked reaching $1247.20, just below the all-time high set in the previous session. Gold is threatening to push above the $1250 level as it continues its bull rally amid concerns over euro zone public debt.
The bullion is once more gaining on safe-haven appeal as investors are still spooked about euro zone sovereign debt and the long-term impact of the EU/IMF bailout package. With new austerity measures already announced in Spain and Portugal this week along with similar measures in the UK on the horizon, investors fear overall growth is in danger of stalling. Moreover as the euro and pound continue to weaken, investors are placing more wealth in the yellow metal sparking the current record demand.
Oil N’ Gold places the next resistance levels just above the current price at $1249.67 and $1255.63. On the downside, support levels are listed at $1239.43 (a previous resistance) and later $1233.47
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