Yesterday, gold prices kept on declining amid traders’ decision to close profitable long trades.
During yesterday’s American trading session, the gold futures for April delivery (NYMEX) depreciated by 1.1% or $18.3 down to $1676,30 per troy ounce.
Analysts assume that despite the fact that the US GDP report showed a decline by 0.1% in Q4 2012, thereby supporting the rally, there won’t be any long-term rally in the market of gold.
experts assume that gold and silver may well keep retracing in the short run amid consolidation and profit-taking.
Chicago’s business activity index is also contributing to the weakness of precious metals.
Still, investors have always treated gold and other precious metals as safe-haven assets during times of uncertainty and economic instability, when other financial markets (especially currencies) get volatile and less predictable.
