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.

Read more:
Dubai Cost of Living Now More Affordable; Or is it… Dubai cost of living has become more affordable, according to Savills’ Live/Work Index, but not according to local expats. In 2014, the city was ran...
Investment in Gold Now More Lucrative While both equities and oil retreated from the beginning of the week, gold followed up a strong start with another rally on Tuesday, taking out the ke...
Over Quarter of UAE Population in Debt More than 25% of the population of the United Arab Emirates is living in debt. That was revealed by a new survey, which also found that the monthly de...
Abu Dhabi inflation rate in consumer prices rose to 2.8% The Abu Dhabi inflation rate in consumer prices for the first seven months of 2014 was 2.8%, compared with the same period of 2013, as shown by the in...

Leave a Reply

Your email address will not be published. Required fields are marked *