Gold, having gained the most in two weeks time, has held the uptrend amidst the US economic data supporting the continuation of ongoing Quantitative Easing-3 (QE-3) program. The market has been estimating that the Federal Reserve (Fed) shall continue its asset purchase program to support the economic recovery. Further, as the outflow of physical gold holdings has slowed down, the metal is expected to continue its current momentum, at least for some time from now. In the last few days, the yellow metal has climbed up to 1.7 percent from its recent treading prices.

Beyond the fundamentals of Fed’s easing program, unexpected contraction observed in the largest economy of the world, i.e., the US, has also led to the downfall of the greenback, eventually forcing the safe haven to head towards the north, obviously with coming supports from the markets, both tangibly and intangibly.

Though few weeks back, the US economy had been exhibiting the signals of having gained sustainable economic recovery, with the latest economic indicators suggesting the contraction in the economy, the market sentiments have changed for the precious metals. Despite some of the market participants claiming on the notion that gold can’t be taken as a safe haven at current economic circumstances, many have already shifted their wealth to the ‘so-believed’ safest yellow metal. Further, considering the economic recovery in the US as Fed had ‘almost’ declared the winding down of the unprecedented QE-3 program few weeks back, amidst the latest economic updates the Fed has displayed the gestures of continuing the asset purchase program, consequently supporting the gold prices to sustain and rise.

At least for now the safe haven is looking buoyant; it is primarily the economic stance of the US, more specifically the growth, unemployment and inflation, which shall determine the future of the precious metal. For the time being, in the absence of other major market fundamentals, the investors would be better-off to stringently follow the track of the US economic indicators and subsequent Fed’s actions concerning the articulation governing the ongoing QE-3.