Economic Events: (GMT)
Analysis and Recommendations:
Gold is trading 1677.00 up 12.80 as of late afternoon trading. As investors continued to seek a safe haven to park their funds. Gold also benefited as traders took profit from the rising euro.
Earlier EU ministers officially enacted an immediate embargo on Iranian oil as well as froze the assets belonging to the Iranian National Bank and all metal futures also.
This turned up the threats from Iran, as the rhetoric is turned up, investors worry and are running to safety.
As the USD weakened, commodities increased. More and more traders are showing interest in gold helping push up the prices.
As investors continued to worry about the Greek scenario and the overall EU debt crisis, gold became a good option. The Greek haircut deal is not complete and no one at this time is sure there will be a deal with creditors or a deal the EU and ECB will support. Time is running thin and so are investors patience.
Gold should continue to rise over the next few days. Gold will be supported at 1644.92, Friday’s low and resistance exists at 1694.91, the high of October 17. We should see gold climb to its upper level over the next few months as we continue to deal with the EU crisis as Spain and Italy come back into view. The Iranian problems are not going to dissappear and tensions will probably escalate over the next few weeks. Whether or not the embargo has actual financial effects on Iran or not doesn’t matter, they will see it as an insult and a threat by the Western nations.