Declining investor interest in high-risk assets inflate the price of gold. This precious metal had gained to highest level since last May. Investors has choose on gold because of increasing the worried about the debt crisis in the European Union which is expected will be spread to Italy.
Yesterday, gold closed up 0.6% to US$ 1,553.60 per troi ounce. This is represents an increase of six consecutive sessions in the last entire stock following the splendor action to the metal which people known as symbol of this prosperity.
At the same time, gold has also recorded the highest rise against the euro and sterling. gold prices are Euro-denominated and create a highest record all-time at 1110.48 euros per troi ounce. While in sterling, gold scored a highest record at 979.89 pounds per troi ounce.
Gold performance is also boosted by uncertain conditions in handling of America’s debt. US President, Barack Obama is still trying to ask the Republicans to agree on new credit limit in order to avoid default on debt that is due August 2.
Analysts of Commodity from Valbury Asia Futures, Ahim assess that condition reinforces the bullish indication is based on intraday charts to support the projected continuation of the rally with a potential weekly target toward the level of US$ 1557.75 per troi ounce.
“But of the level of RSI which has entered the overbought area must be aware, it indicates the price of gold wil be easily corrected because of increased drastically since the beginning of July. Level intraday support this session are in the range of US$ 1,547.20-US $ 1541.40 per troi ounce.
