The yellow metal, Gold, has been the favorite of individuals during good times for many decades. And it has been the safe haven for big countries whenever there was a global turmoil. So when a war breaks out in any part of the world or whenever there is a big economic recession, countries also start buying gold in tons and thus the prices keep moving up drastically.
Last week, the Gold prices hit the 1200 dollars an Ounce mark once again after a gap of many months, due to increasing demand for the yellow metal from big customers. And if the European Union crisis is going to bring down the global economy over the coming months, as many people fear, there could be a record demand for the yellow metal.
On the contrary, if the European Union problem subsides , and coupled with that is there is a decent US economic recovery, we may see a marginal decline in the gold prices.
So do not expect any major correction in Gold prices in the coming months, and it would be prudent to stay on with your existing gold investments. Further buying can be considered if the Gold prices crash by 10% or more for any reason in the coming months.