Today in morning trading at Asian market Gold made high of $1307.33 on weak U.S. economic results.
Demand for haven assets advanced on discouraging results of Retail Sales, Core Retail Sales and Unemployment Claims. According to Census Bureau of U.S. Core Retail Sales dropped to 0% for last month from 0.3%, lowest since 13th August, Retail Sales fell to -0.4% from -0.1% which was lowest in last 10 months and claims filed by unemployed increased to 339k for last week from 331k.
Dollar index fell to 80.18, lowest since 24th Jan, increased investment in precious metals. Gold and Silver gained by 10.5% and 7.3% in this year after falling near to 28% and 35.5% in last year. Tapering has infused millions of dollar in equity market but continuous poor performance of the economy may put invested amount at stake.
Gold ETF holdings have increased by 237.3k to 56.1M yesterday shows that investors sentiments are more on bullish side. Today Consumer Sentiment data will be released at GMT 1455 that is expected to remain near to previous level of 80.4
In emerging economies growth rate is low compare to their previous performances. Eurozone is still under recovery. We may find investors keeping money in both kinds of assets i.e. equity and commodity. It seems that the bullion rally has not ended. There is yet to see in precious metals.