After a new decline to $1,700, gold’s spot price has once again managed to recover to $1,730. This is showing the resilience of bullion in the current uncertain scenario. Every time the price falls, it seems that investors are seeing it as a buying opportunity more than time for further selling. Despite the recovery of stock markets seen in April and May, appetite for bullion remains significant.
Technically, a new fall below $1,700 would denote weakness, while a first negative signal will only arrive below $1,675. Vice versa, a clear break through $1,740 can open the way for further rallies to the 7 ½ year high at $1,765.
