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-- Posted Friday, 28 May 2010 | | Source: GoldSeek.com

Gold is up marginally on the day and the late day rise may be due to the downgrading of Spain and to geopolitical concerns with a North Korean general warning of “all out war” if any accidental clashes with South Korea break out. The Spanish downgrade has seen the euro fall again and will do nothing to ease sovereign debt and euro currency concerns.



With gold up on the week (up some 3%) having risen most days this week, some profit taking was seen earlier. With trade winding down for the Memorial Day holiday weekend, traders seem to be unsure whether to take profits and move to the sidelines or to hang onto positions. The Dow Jones has had the worst may in 4 decades (since 1967), and risk aversion clearly remains strong and this is supporting gold at these levels. Maroeconomic risk remains elevated and will remain so for the foreseeable future and this will lead to continuing diversification in gold.



Futures Prices at 1900 GTM

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-- Posted Friday, 28 May 2010 | Digg This Article | Source: GoldSeek.com




 



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