| Gold showed it still has a little more shine left to it. The precious metal bounced back to a three-week high after turning negative for the year. Investors have been flocking to bullion as the European economy and markets shake up. However, the rally in bullion may be short-lived because of strength in another safe haven, the U.S. dollar.
Gina Sanchez, founder of Chantico Global, expects gold prices to trade relatively flat, if not weaken, because investors are also piling into the dollar. “While we are seeing some negative sentiment around economic growth, the fact of the matter is that the U.S. is still growing better relative to the rest of the developed markets,” she said. “That’s causing a lot of money to flow into the U.S. dollar, and as the U.S. dollar continues to strengthen, that is bad for gold.”..............................................Full Article: Source
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