Why gold prices aren’t following the Nikkei downwards
Slip-sliding away
Chances are slim that gold will fall significantly further because of China’s slowdown, renewed euro zone fears and the current proximity to production cost of $1,200/oz, writes Rakesh Neelakandan in his latest article for Commodity Online.
As a result of these factors, Neelakandan sees safe haven demand rebounding.
The Nikkei index’s latest drop, however, is “12.6% below the euphoric highs it touched last week which had been a 5-1/2-year high.”
US economic data due Thursday will be one indicator of gold’s direction over the near term.
Check out the article in full here.
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