WHAT WILL GOLD’S SUPPORTED PRICE BE? DATA CONFIRMS GERMANY’S ECONOMIC RECOVERY
Gold has remained at a 6-month low following last Friday's big loss from positive economic news. At this point the yellow metal requires some pessimistic data to rebound or a heavy demand in the asset. “Gold bugs would argue that last week’s pullback has opened up the opportunity to buy the metals at cheaper prices, and that, over the long term, prices should rise,” said GFT Markets technical analyst Fawad Razaqzada.
Germany appears to be heading down the path of recovery as German analyst and investor sentiment increased to its highest level since April 2010 in February. This data reflects optimistic news for Europe’s largest economy as investors have been cautious of the nation. "The financial market experts have made their peace with the weak fourth quarter of 2012. In their opinion the German economy faces less headwinds from the euro crisis than throughout the last months. If this situation remains unchanged during the next months, German business activity may pick up speed moderately", ZEW President Professor Wolfgang Franz remarked after the results.
At 1:06 p.m. (EST), the APMEX Precious Metals spot prices were:
- Gold, $1,606.80, Down $3.70.
- Silver, $29.47, Down $0.44.
- Platinum, $1,697.50, Up $19.80.
- Palladium, $765.40, Up $11.30.