Why gold prices aren’t following the Nikkei downwards
Chances are slim that gold will fall significantly further because of China’s slowdown, renewed euro zone fears and the current proximity to production cost of $1,200/oz, writes Rakesh Neelakandan in his latest article for Commodity Online.
As a result of these factors, Neelakandan sees safe haven demand rebounding.
The Nikkei index’s latest drop, however, is “12.6% below the euphoric highs it touched last week which had been a 5-1/2-year high.”
US economic data due Thursday will be one indicator of gold’s direction over the near term.
Check out the article in full here.