Economic news keep making investors increasingly worried about a possible decline in the global economy, thus turning precious metals into “safe haven assets”.
The USA’s existing home sales and Philadelphia manufacturing index showed gloomy perspectives for the US economy. The Philadelphia index declined down to -30.7pts, the biggest decline since 2009. The existing home sales disappointed investors as well (4.67M instead of 4.91M).
Another factor disturbing investors was the Fed Reserve’s statement about the possible spread of the eurozone’s debt problems over some of the US financial institutions.
Against this background gold still looks interesting to buyers as they expect the price to go higher. Moreover, in the short run we will see a seasonal increase in the demand for gold from jewelers.
According to the Department of Commodity Trading, , in near-term perspective gold will probably find support and start rallying as the physical demand is high. The closest support levels are 1 825$ and 1 782$, the closest resistance levels are 1 870$ and 1 872$.
