Featured Post

Latest Gold News

Fed doves supporting gold Stronger rand crushing South African miners Economic power could shift further East with Hong Kong gold exch...

Friday, July 2, 2010

Gold Prices Rebound on Safe Haven Demand

It wasn't a surety which way gold prices were going to go today, as investors sold gold off yesterday as continual bad economic news hit the market, and uncertainty as to whether or not there may be some deflation weighed on investors.

Today that has changed dramatically in the first part of the trading day before the long Independence Day weekend in America, as gold has rebounded some and is moving in positive territory.

Austerity moves in Europe in response to the sovereign debt crisis could result in some recessionary pressures, although in the long run it's far better for the region if it's to survive as the European Union.

Data coming out from America is just as bad, and generates the question of whether or not we've ever emerged from the recession, as once the government gimmicks and props were removed, the reality of the true condition of the economy was seen again, and it doesn't look good.

China's battle against inflation in its urban property markets will slow down the growth there, although it will still be robust when measured against the majority of other economies in the world.

All of this is good for gold, although if there are some major drops in prices, and deflation, to some degree, becomes a reality or perceived as a reality, it could change the gold landscape to some degree, although it still has support and the fundamentals will remain the same for the long term.

No comments: