Gold Advances despite Risk Aversion

Gold saw fairly significant gains during mid-day trading yesterday, despite risk aversion in the marketplace which typically leads to losses for the precious metal. Analysts attributed the bullish movement to expectations that the ECB will soon move to initiate a new round of stimulus to boost ailing euro-zone economies. Gold moved up close to $14 an ounce yesterday to peak at $1616.55 before staging a slight downward correction. Today, gold traders will want to pay attention to the US Trade Balance and Unemployment Claims figures, both set to be released at 12:30 GMT. Should either of the indicators come in worse than forecasted, investors may shift their funds away from higher-yielding assets which could cause the price of gold to turn bearish.

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. ForexYard