Source: ForexYard
Gold showed some strength during Thursday’s trading after falling to a week-low prior to today.
Even though the precious metal was trading well below the levels we have previously seen, investors were keen to profit from the current poor price.
The yellow metal appreciated after apparent rumours that France could be downgraded,which lead to panic in the European Markets creating renewed concern over the Euro-zone crisis.The rumours of a French downgrade was spread throughout Europe despite the fact that strategists dismiss the claims.With the first round of Presidential elections to take place soon, it seems unlikely that a downgrade would occur.
Gold prices were also given a boost by the U.S weekly jobless claims which produced better then expected results.The precious metal climbed as high as $1,654.90 after appreciating 0.5 percent to $1,647 during Thursday’s trading.
A boost in the number of unemployment benefit requests in the U.S also helped in gold trading up, as the figures reached a four-month high,leading to investors showing concern for the future of the U.S Economy.
Despite gold’s recent boost,the yellow metal has not performed as a safe-haven asset should over the past few months. There were mixed fortunes for other metals during Thursday’s trading as Copper slightly fell whilst silver showed very modest gains.
Forex Market Analysis provided by ForexYard.
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