After the Gold Lull
A lack of major geopolitical flare-ups and temporary easing of the European Union sovereign debt and financial crises have helped compress gold market prices into a sideways, choppy six-week trading range on the daily bar chart. But don't expect the lull in the precious yellow metal's daily price action to continue for an extended period. There are fundamental and technical factors that suggest the recent low volatility in the gold market will not continue.
From a fundamental perspective, the EU's ongoing debt and financial problems are slowly working their way back to the front burner of the market. The EU is presently in an economic recession, which makes effectively dealing with a major, collective debt burden a difficult proposition. And it appears traders and investors are realizing that. European bond yields (except in bellwether Germany) are on the rise again, which implies less confidence in the region. The common euro currency has been trending sideways to lower on the charts since late February....322 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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