After being caught in tide with private equities, last week gold traded as a safe haven asset again, moving inversely with stock indices.
Demand for the yellow metal was dampened at the end of the week with gold price falling from a five week high as EU debt concerns were renewed with Italian bonds yielding a record high.
On Friday gold crossed the 1750 mark for the first time in over a month before sliding lower. Despite the slight pull back during the last trading session, spot prices were poised to close higher for the week, gaining more than 6.0%, after sliding 2.26% the week prior.
Demand for the precious metal remained strong from India as the nation celebrated Diwali and prepared for the wedding season ahead. Analysts continue to gauge European credibility and gold prices are expected to reflect that in the coming months.
The yellow metal prices were also pushed higher by market players who remained concerned about the Euro zone economic outlook and favoured gold as a safe haven asset. With uncertainty and concerns over global and domestic economic growth lingering in the stock market, gold is expected to remain buoyant with investors preferring precious metals as a safe haven asset.
