GOLD started last week by making a new record high at 1265 when China, the world’s third-largest economy, allowed more flexibility in the yuan rate. A stronger yuan will increase the purchasing power of Chinese investors. However, gold prices failed to sustain the record high as investors took profits in markets thus triggering the biggest slide in a month to 1230.
The yellow metal climbed again on European ongoing debt default and inflation concerns. The prices reached 1246 but were eroded by the US dollar’s rally and suppressed to 1225. The flight off Europe seems to be subsiding and gold is beginning to poise against the dollar again. Market investors for gold were disappointed for not being able to surge further after it attempted a new high to 1265.
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