Gold yesterday on raised risk aversion, stemming from several developments


Gold yesterday on raised risk aversion, stemming from several developments. A bombing in Jerusalem further raised concerns over political stability and the possibility of further turmoil in the MENA region. The rejection of austerity measures by the Portuguese parliament has once again brought the Eurozone sovereign debt crisis into the spotlight. In addition, sentiment has been soured further by speculation that Moody’s will downgrade Spanish banks. The threat of financial contagion throughout the Eurozone is continuing to encourage interest in precious metals as a safe-haven. Not much is expected, in terms of a comprehensive package to address the debt crisis from the EU Summit starting today. For the most part, the rally in gold and silver continues, with silver leading the way on approach of new highs.

Gold support is at $1,430 and $1,420. Resistance is at $1,446 and $1,451.

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