Gold Recovers but Debt Woes Dominate, Cap Gains

Reuters reported that gold prices rose but analysts are not expecting a rally.

As quoted in the market news:

Spot gold gained 0.90 percent to trade at $1,693.60 an ounce by 1432 GMT, off the four-week low of $1,665.88 hit on Monday. The precious metal has lost nearly 5 percent over this week and last.

Analyst Jesper Dannesboe said:

I wouldn’t be too confident it’s going to rally short term because risk aversion is at very high levels and when risk aversion is extremely high gold tends to fall.

Click here to read the full Reuters report.