Shaking off last week’s flat performance, gold rose steadily this week, pushed up in large part by the escalating Ukraine situation and concern about China’s economy. The yellow metal’s upward trend began Monday morning, as a standoff in Ukraine offset pressure from both strong US payroll data and weakness in other commodities, as per Reuters. By Friday, gold broke through the $1,370 mark, rising as high as $1,374.85 late in the afternoon – that’s it’s highest price since September 10.
The key question, of course, is whether gold’s positive price movement will continue. Unsurprisingly, opinions differ.
While The Wall Street Journal states that some market watchers believe “there [is] plenty of reason for gold to continue its move higher,” Kitco News reported today that others are “viewing the current price rally cautiously” due to the fact that physical gold buying, “particularly out of Asia, has been subdued at best for the past few weeks.” Their concern is that if the pressure provided by Ukraine and the Chinese economy disappears, “values for gold may … wither without a pickup in physical buying.”
See full story on goldinvestingnews.com