Why gold prices aren’t following the Nikkei downwards

Slip-sliding away

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.

 

21 0

More Gold News

Latest Stories

SIGN UP FOR OUR DAILY NEWSLETTER