Gold has hit a fresh record by beating the $1,500 an ounce barrier for the first time ever in spot trading in Asian markets, fuelled by the recent downgrading of US debt by credit rating agency Standard & Poor’s. This has created weaker prospects for the dollar on the market; when combined with precarious position of sovereign debt in the Eurozone and continued conflict in the Middle East, ‘hard assets’ such as precious metals have been in the ascendant.
Following the rally in Asian markets, speculation is rife as to whether further trading in the USA and Europe will see the price of Gold rise even further. According to the Guardian, analysts at Barclays Capital believed the price of gold could go up to $1,520 an ounce in the next two to four weeks http://bit.ly/eqb5H6.
Other market watchers were marginally more conservative. Natalie Robinson of ANZ told the BBC; “We do see gold very well-supported at the $1,490 level” http://bbc.in/hKeHK1. Whether Gold continues to drive forward in the immediate future or consolidates prior to a sustained rally, it would seem all too apparent that Gold is still the safe haven of choice for many investors.