Amid EU debt crisis woes and increasing demand in Asia, gold has reached a one month high, attracting investors as a safe haven despite the dollar’s recent momentum. Though the economic situation is sub-optimal, this turn of events is encouraging for companies like APMEX. Reviews of the recent developments revealed that traders believe that “short covering after gold breached above the key 200-day moving average” was also a likely contributor to the new prices, according to Reuters.
“While the dollar may not see a significant correction soon, and is likely to continue to gain against the euro as the euro zone crisis persists, the negative effects of a stronger dollar on gold are likely to be largely diminished in 2012, allowing the bullish macro drivers to dictate price action once again,” said Societe Generale.
U.S. gold retailer companies like APMEX saw gold increase by 0.8% to $1,644.60 an ounce in January. Though the rate receded slightly, it is undoubtedly setting up for another round of gains. Reuters’ market analyst Wang Tao suggested that spot gold may peak at $1,650.