Gold has made a determined break to the upside this morning trading as high as $1,133/oz. In the last 52 weeks gold has now risen 52.13% in dollar terms and 31% in euro terms.
Investors are continuing to seek safety from an uncertain dollar, potentially medium term inflation and near term deflation. Respected fund manager Blackrock has also added fuel to the markets with its view that Central banks will become net buyers of gold this year. India's resent purchase of a portion of the IMF's gold at a price of $1,045/oz is finding many plaudits and indeed may spur other central banks with significant dollar exposure to emulate the move.
The Asia Pacific Economic Cooperation forum, meeting over the weekend, have stated that the recovery is still “soft” and will require further stimulus before becoming “durable” – this has delighted equity buyers the world over who have bid up many stock markets. When equity strategists start finding reasons to buy stocks in the words of officialdom, you may want to consider a run for the hills.
Courtesy: GoldCore.com
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