Even though the precious metal has done well over the last three weeks, it has yet to break out of its downward trend.
Gold continues to threaten a break out of the negative decent it has found itself in over the last twenty months, ever since it hit its all-time high of $1912 back in August 2011. There has always been a solid following of supporters, who have been willing it to return to aggressive ascent higher.
The precious metal’s biggest problem is that even if it were to break above the $1300 level it would find another longer-term resistance around the $1550 level. And over the course of the last twenty months, the fondness in which it is held by many investors has not been backed up by the financial muscle to maintain or improve its performance. As time has ticked on, this non-yielding asset has, even with global economic problems, become less attractive to institutional investors.
The almost constant flow of negative news has slowly but surely numbed the markets’ responses to it and created a very blasé attitude towards bad news. This ultimately has resulted in an ever-decreasing desire for safe-haven investments.