Gold soared within touching distance of $1,500


The announcement that S&P has changed the US credit rating outlook to negative, broadened the appeal of gold and silver has an alternative investment amid fears of a faltering global recovery. This added to the risk-off sentiment stemming from continued unrest in the MENA region, and the ongoing fears over the Eurozone region’s lingering sovereign debt problems.

Gold soared within touching distance of $1,500, before profit-taking spurred a fall below $1,490 during Asian trade. Interestingly, silver was not leading the charge the time around, with erratic price action curbing the metal’s gains as investors appeared to ignore the market. With risk aversion at heightened levels and the dollar weakening, we expect gold and silver to enjoy continued support today, although the $1,500 mark proves a significant psychological barrier for gold.

Gold support is at $1,482 and $1,470. Resistance is at $1,503 and $1,510.

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