Where is Gold heading ?

Europe turmoil is forcing investors to put there money in worlds couple of safe heaven like US dollar, Japanese yen, US treasuries, German Bond etc.. But As Moody's threatens Germany's top-notch rating and US is facing fiscal cliff this year-end. The economy could be dramatic. While the combination of higher taxes and spending cuts would reduce the deficit and sending the economy into a recession (i.e., negative growth). A Wall St. Journal article from May 16, 2012 estimates the following impact in dollar terms: “In all, according to an analysis by J.P. Morgan economist Michael Feroli, $280 billion would be pulled out of the economy by the sun setting of the Bush tax cuts; $125 million from the expiration of the Obama payroll-tax holiday; $40 million from the expiration of emergency unemployment benefits; and $98 billion from Budget Control Act spending cuts. In all, the tax increases and spending cuts make up about 3.5% of GDP, with the Bush tax cuts making up about half of that, according to the J.P. Morgan report.” Amid an already-fragile recovery and elevated unemployment, the economy is not in a position to avoid this type of shock.

Looking at all this future developments investors will look again towards GOLD as a safe investment. GOLD performance is not at all good from last six month except last month. But it’s stable and it is on verge of huge movement.....probably UPSIDE!