By Dan Eduard – Spot gold has soared higher over the past three weeks and is currently trading at an all time high. Investor concerns over the European economy have traders piling into the commodity, fueling rapid gains.
Spot gold prices are trading at a record high of $1235.05 after ending yesterday’s trading at $1227.83 This is a breach of the previous all time high of $1224.70 that was set in December of 2009. The price of spot gold has risen 25% this year. Significant gains have been marked since the price of gold breached the resistance level of $1169.
As the euro plunges versus the dollar due to European sovereign debt concerns, traders have looked for safe haven assets. Chief among them has been spot gold. Much of the buying over the past few days has been linked to European buyers.
The previous rally in spot gold prices occurred as investors were concerned as to the staying power of the U.S. dollar. As such, it appears that the shoe is on the other foot as the greenback has been strengthening both in part to the European fiscal crisis but also do to the recent string of positive U.S. economic data. The euro has fallen from a yearly high of 1.4500 to 1.2520.
Below the spot gold daily chart shows the major and minor trend lines along with the significant resistance level of $1169.
Forex Market Analysis provided by Forex Yard.
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