The gold price fell yesterday as low as $1,570, breaking down the first support level of $1,590 in the process, on growing fears that central banks will buy much less gold and other precious metals in the next few years. Despite this quick descent and despite the strength of greenback seen in the last few hours, bullion has managed to recover and is once again challenging the psychological threshold of $1,600, in a situation which remains volatile and dominated by uncertainty. In the next few hours bullion will be called to hold on around $1,590-$1,595 with any failure to do so confirming the weakness seen yesterday.
