Gold has just about everything going against it right now, but still remains resilient with prices when taking everything into consideration.
One of course is the historical lack of gold demand in the summer, which usually drives the price of gold down some.
That doesn't explain the overall correction in gold prices though, and that is related to inflation, which for now in the united States, has been pretty much kept under control. At least that's the perception.
What hasn't changed, as evidenced by Moody's (NYSE:MCO) downgrading Ireland's government bonds today, is the safety factor. Mainstream media reports have given the illusion we're still solid economically around the globe, but that's far from true, and with the European Union being the largest economy in the world, it's a good reminder for investors to keep their eye on that region, as the sovereign debt crisis is far from being over there.
As of 2:17 PM EDT, spot gold was at $1,180.80, dropping $11.20. Gold futures for August delivery were almost the same, coming in at $1,180.40 earlier in the trading session.
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