Gold Bullion Buoyed by Broad Risk Aversion
Source: FXstreet (3/14/11)
"Gold bullion extended Friday's late recovery in overnight trading. . ."
The disaster in Japan has added another layer of uncertainty to an already-fragile market sentiment in light of tensions in the Middle East and North Africa, as well as re-emerging eurozone debt concerns. Investors are now pulling back from risky positions and taking refuge in safe-havens like the yellow metal, nervous that recent events could stall the recovery in Japan and more broadly across the globe.
In Europe, EU officials made what is seen as partial progress in regards to strengthening a rescue package for indebted nations in the periphery, but doubts still remain ahead of a more crucial meeting in two weeks. In particular, ministers agreed to increase lending capacity to a full €500 billion, yet poignantly rejected proposals to purchase bonds on secondary markets directly from investors.