Gold rise sharply twists and turns recovery

International rating agency Moody's announced on Tuesday lowered Portugal rating from Baa1 to Ba2, outlook is negative. The agency increasingly worried that Portugal will not fully achieve deficit reduction and debt stabilization targets.

Moody's rating cut to junk the Portuguese crisis was spread to the European trend, to obtain a significant boost demand for gold as a hedge. In addition, the new president of the International Monetary Fund Lagarde said on Wednesday that the current fragile and uneven global economic recovery is facing a major threat to the sovereign debt crisis and capital flows to developing countries may increase their risk of economic overheating is most worried about her problems now . On the other hand, the strength of recovery in the U.S. labor market weakened, thus increasing the safe-haven demand.