Gold prices will balance on global crisis

High Crude prices lead to increase global inflation which may hamper world's economic growth. So hedge funds have increased their stake in Gold and gold prices are having a spurt as a safe haven demand. The recent rise in Gold prices is due to geopolitical tension in Middle East which gave a thrust to Crude prices to go up. If situation get worsening, gold prices may rise further. However, the may not rise with the same momentum as it previously did in last couple of weeks. Gold prices have risen by more than one percent this week. However, it may give some correction from present levels as Gold has already discounted the bad news of Middle East. Gold prices are now hovering around its resistance of USD 1410 an ounce. Gold prices are hovering between 1390 and 1410 USD an ounce from last few trading sessions. Gold in international markets last traded strong at 1407 USD an ounce after it made seven weeks high near 1418 USD per ounce. Silver last traded at $32.99 per ounce. Silver prices have made a multi year high near 34.32 USD an ounce. Gold may find supports at 1375, 1361 and 1335. While, resistance levels are 1431 and 1465. Gold prices are also well supported on investment demand which is coming from developing countries like India and China. - Commodity Online