GOLD steadied yesterday , but analysts expect the precious metal to extend gains to new records over coming days as waves of investor money come flooding into the market.
Spot gold was bid at 1233,95/oz by midday from 1236,35 on Wednesday, when it hit a record 1248,15 on fears a European rescue package will not solve the euro zone debt crisis. However, news the European Central Bank would buy euro zone government bonds has dampened gold market sentiment. But analysts say risk aversion still dominates market psychology and the fact that gold has moved up alongside the dollar only reinforces investor bias towards the precious metal.
“Predicting what could happen next is extremely difficult, but the indications are bullish. We’ve seen this kind of environment before,” Dan Brebner of Deutsche Bank said.
