MARKET RECAP Spot Gold prices closed at $1242/oz on Wednesday after touching an intra-day low of $1234/oz. Mixed sentiments in the global financial markets attracted demand for the yellow metal as a safe-haven investment. SPDR, the world’s largest ETF backed by gold reported that its gold holdings reached new record high of 1320.436 metric tons as on June 29th. OUTLOOK We expect gold prices to gain today as the global economic situation continues to remain grim. In addition to the Eurozone concerns, the major economies of the world are indicating signs of weakness. Poor economic data from the larger economies is indicating that the economic recovery could falter. In these times of uncertainty in the markets, investors would flock towards safer investments like gold and the DX. Gold has always been treated as a safest asset in turbulent times and this factor will attract demand for the yellow metal, helping the prices to march northwards.

Source