A risk on approach continues to prevail on stock markets with investors switching a percentage of their portfolio back to shares in the last few weeks with this trend persisting in the last two days. Despite the temporary weakening of the greenback, bullion is suffering in the current climate.
The spot price declined again to trade near $1,700 as investors are seeing less urgency of having a significant percentage of gold in their portfolio for the time being. Technically we have seen the breakdown of the support level placed at $1,725, with $1,700 the next target while there is space for a further correction down to $1,675 if the risk on scenario persists.
