With the recent financial turmoil in the western world (esp. in US & Europe), central banks on major economies are defaulting to stock precious metals especially gold. During the first week of September this year, different European governments are struggling to solve internal as well as external debt matters. Financial instability of some Eurozone member-nations could hardly make ends meet to pay interest on their credits. Together with the United States their debt-related problems accordingly was under a national threatening security condition.
During this said week major index in the Eurozone is in red status, meaning the stock market is down. Gold price is also down because lots of European banks sold their gold reserves in order to liquidate cash making a temporary decrease of gold’s price. Better yet on the following week BRIC (Brazil, Russia, India and China) nations offered to assist for the resolution of the said dilemma.
As to this writing gold is advancing to more than US$1,800.00 which may extend up to the third week of September and is foreseen to be bullish once again up to US$1,900.00 per ounce. This is because gold is still at higher demand.
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