Spot Gold prices have finally staged a recovery, after falling yesterday to $1522.65, the lowest levels seen since July. Thursday’s low has now seen gold tumble $399 from its record high of $1921.15 back on the 6 Jun. As previously reported by MNI, it’s becoming more apparent that investors are now clearly showing a preference to the more liquid USD. Yesterday’s fall in cash Gold prices also saw the US dollar trade up to a 15-month high versus the euro, with the EUR/USD pair trading down to 1.2858 with US dollar strength dominating the FX market. Cash Gold prices have traded back up to London session highs, after yesterday’s steep decline. Volumes remain thin, as metals traders look to square up some of their books ahead of the new year. Despite gold’s negative showing for the latter part of the year, the precious metal has still returned 8% higher in 2011, chalking up an 11th
successive year of gains. Gold has effectively done its job as a haven for 2011, but it remains to be seen if investors’ flows can carry the same weight going into 2012.
EasyForexNews Research Team