Although the market ignored Moody’s downgrade of Greece’s credit rating (from A3 to Ba1) and went higher earlier in the week. Increase in US initial jobless claims and decline in confidence index fuelled worries over sustainability of economic growth in the world’s biggest economy. EU’s pledge to release the results of bank stress tests initially lifted confidence. However, the likelihood that some banks might have failed the test and the result might display weakness in European banking system put investors into despair again. This spurred flight for safe-haven assets and sent gold to a new record high on Friday.
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Weekly Fundamental Outlook for Energies and Metals – New High in Gold Indicates Renewed Market Fears over Growth, Europe
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