Gold Daily Fundamental Analysis for September 08, 2011 |
Gold prices tumbled on Wednesday amid rising optimism around global financial markets, where traders were optimistic after Italy announced new austerity measures, which provided stock markets in Europe and the United States with strong bullish momentum, and accordingly, traders opted to invest in higher yielding and more risky assets, which put strong negative pressure on gold prices one day after rising to a new record high on Tuesday.
We still preserve our bullish outlook for gold prices, where traders are likely to continue targeting safe assets including gold amid the huge uncertainty that continues to surround the outlook for global growth, especially since emerging signs suggest global growth is slowing, and that should continue to support demand for gold as a safe haven over the coming period.
Moreover, traders will be focused on rate decisions from Europe, where the Bank of England and the European Central Bank are both expected to leave the benchmark interest rates unchanged, however, some traders are speculating both the BOE and ECB could signal a Dovish change in the monetary policy outlook.
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