Last week gold has managed to recover most the losses it suffered in the week prior despite rising world stock markets. However, slowing economy concerns drove equities lower towards the end of the week and sent precious metals soaring on a more risk-off attitude.
Gold futures settled 2.6% higher last Friday as freshly released negative data in the U.S. spurred flight-to-safety buying. Gold for September delivery added $47.80 to end at $1,876.90 an ounce on the Comex division of the New York Mercantile Exchange. On the week, gold rallied 10%.
The gold bullion remains well supported, as investors are afraid to liquidate their long positions amid ongoing policy uncertainty in both the U.S. and Europe. In August, the yellow metal appreciated by 12% while stocks sharply dropped, and commodities see-sawed around. Many stock markets actually had their worse month since the October following the collapse of Lehman Brothers in 2008 which helped send gold to new dizzying highs.
A survey of analysts reveals a split between those that predict breaching the $2000 level and those that predict a descent to $1500. Gold‘s recent correction was only around 16%, which is not enough to break its uptrend.
