Pair of gold / U.S. dollar move higher on Monday, as the European political turmoil and economic data that came weaker than expected from the United States, increased the attractiveness of gold as a safe asset.
Spanish Prime Minister faces “Mariano Rajoy,” demands from the resignation of the opposition parties against the backdrop of a corruption scandal, and opinion polls in Italy show that the former Prime Minister “Silvio Berlusconi” gets more popular before the elections scheduled for this month.
Resulting uncertainty in the euro zone stocks a fell in Asia and Europe and the United States, and bond yields rose by ten times annually for the Spanish and Italian from gold reserver. Recent price action shows that the demand for gold has found more support as investors turned to gold, which is relatively safe.
Although we are still stuck within the last week, I think that the pair will penetrate to the outside soon. As I said in yesterday’s analysis, key levels that should be monitored are $ 1674 and $ 1660 USD/Ounce of gold.