A recovery in risk appetite threatens to undermine gold prices for a second day amid fading safe-haven demand. Indeed, short-term correlation studies continue to show a significant inverse relationship between gold and the S&P 500 and the pickup in futures tracking the index ahead of the opening bell on Wall Street bode ill for the yellow metal. Gold prices thrived as fears of a double-dip global recession began to circulate around financial markets amid increasingly overt signs of simultaneously slowing growth in all of the major hubs driving the recovery (China, the EU and the US).


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