Is Gold Back on Euro Worry

Is Gold Back on Euro Worry.

Markets have seen the value of gold drop over the last month as worries over US stimulus programmes continues. Gold which has seen a huge demand in recent years crashed in value and now is only attracting high risk investors.

The price of gold fell below the $1,200 mark last week, hitting its lowest level in years. Mixed feelings are being shown with experts with many saying that this trend will continue, some feel that this is the perfect moment to enter, and others feeling that the drop is overhyped.

Our View

The markets are in turmoil.  One minute stock markets tumble on the back on fears for US QE slowdown and then Portugal's debt worries and then bounce back as both the Bank of England and the European Central Bank reaffirm a committment to keep interest rates steady.  People invest in Gold at times of instability.  The price of gold is still high, but fair at the current time - we are neutral to gold in correlation to Euro debt worries at the current time.