The volatility and hypersensitivity of the markets is caused by mistrust of European solvency and the power of the United States economy, and these factors have caused investors to flee to gold. The metal began the week by touching annual highs of $1,557.10 per ounce. Yesterday it dropped to $1,556.00 during the day and had dropped to $1,551.40 at one point.
Yesterday marked gold?s sixth straight day of gains. Its value has risen 4.65% this week. This is a clear signal that it is a winning horse in light of crippled global stock markets.
On Monday another winner presented itself when the Swiss franc posted its historic high against the euro. Once again, the peripheral debt crisis continues to be the key factor that experts are focusing on.
So investors have opted break an unspoken rule in the markets: that the summer is historically a period of low demand for gold.
ETF Securities noted in their weekly meeting that they have seen a record influx of investments in their fund, which tracks the price of gold via an exchange-traded fund. In the past week $56 million have been invested in gold ETFs as a result of three factors: Moody´s lowering Portugal´s credit rating to junk bond status, doubts about Italy?s ability to pay its debt and horrendous employment figures that were published in the United States on Friday.
Translated and Edited in English by Brandon Dyches and Jose L. De Haro
