Gold may face another round of correction

Gold price bit a two-day decline as inflation in China and India accelerated and Greece’s sovereign- debt crisis degraded. Demand for precious metals showed to be still strong. Silver, platinum and palladium also rallied.

Immediate-delivery gold went up as much as 0.5 percent to $1,523.02 an ounce and was at $1,522.13 by 2:48 p.m. in Singapore. Gold for August delivery rose as much as 0.5 percent to $1,523.40 an ounce.

China’s consumer prices leapt 5.5 percent last month, the fastest pace in almost three years, the statistics bureau said in Beijing. India’s wholesale inflation rose 9.06 percent from a year ago in May after an 8.66 percent jump in April, data showed today. Greece was branded with the lowest credit rating for any sovereign nation by Standard & Poor’s, which said that the country may default.

Gold is the main beneficiary of rising inflation, as secures value for investors. Still the metal’s upward momentum is not strong enough to push through the $1,550 level again, which suggests gold may face another round of correction.

You may like the following related posts
Gold Prices Trending Higher Last Friday, gold futures advanced for a third-straight session in a row to end up nearly 2% for the week. Prices for the yellow metal had risen by m...
A mini bull run for gold? Gold prices advanced on Monday in electronic trading, moving above last week’s highs as the equity market continued to wobble. A mini bull run for g...
Gold prices seen higher in the weeks ahead Gold prices are expected to rise in the coming weeks building strength on the previous weeks' gains. On Friday, the yellow metal tallied a five-week ...
Precious metals off to big start in 2014 Gold had its biggest day in three weeks on Thursday, up 1.8% to $1,224 per ounce. Silver was also higher by 3.3%, with optimism about boosted demand f...
Friday’s Sell-off Doesn’t Spell Good News For Gold December gold futures fell 3.19% last Friday, settling at $1,332.50 an ounce on the Comex division of the New York Mercantile Exchange. Futures prices...
Gold Advances Aggressively on Unchanged QE Policy Gold futures pushed higher in early electronic trade on Thursday. The Federal Reserve’s surprise move on Wednesday promising to keep the cash flowin...