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Tuesday (26th) European market trading period, international spot gold rebounded to around $ 1,600 / ounce. European stock markets opened slump, triggered hedging demand in the market, pushing up the price of gold. Italian election results triggered a resurgence of political instability, as well as worries about the European debt crisis, the hedging properties gold shined, pushing gold price higher.
ANZ Bank said on Tuesday (26th), the downturn in the U.S. stock market, as well as the uncertainty of the Italian election, safe-haven buying supported gold prices. However, whether the price of gold rally could continue depends on Fed Chairman Ben Bernanke's testimony in the evening. If Bernanke's testimony appeared dovish, the price of gold may exceed $ 1,600.
Although investors were bearish on gold since late last year, there are still investment institutions seeing gold price going up. PENTO said that within a year and a half, the gold price targets at $ 2,300 an ounce. UBS research report released on Monday (25th) was also optimistic about the gold price.
Goldman Sachs on Monday (25th) lowered the gold price expected this year, and warned that the gold market rally of more than 10 years may have been reversed. U.S. economic growth momentum, investors quick cut on gold investment positions, especially gold ETF positions were stated as the reasons, although investors might have oversold gold recently.
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