Gold prices recorded the highest increase in the last two weeks in New York (Sept 27th). Bloomberg data shows, at 13:42 am New York time, the price of gold futures for December delivery rose 1.5% to U.S. $ 1,780.50 per troy ounce in Comex, New York. This is the highest gain in two weeks, with increasing expectations for additional stimulus from the Chinese and the growing concerns in the Euro zone due to the new austerity measures by the Spanish. Spain announced new measures to cut budget expenditures and forming an independent authority to oversee the government's pledge to cut the budget.
Economic uncertainty in Europe makes the price of gold rose. Throughout the year, the price of gold has soared by 14% and jumped 11% in the third quarter. Positive trend in gold prices this time triggered by the actions of central banks increasing stimulus to revive the economy. The increase in the price of gold is also associated with investors betting on China stimulus. They speculated, the government of China will be poured more stimulus to support the economy. Conditions that could potentially boost demand for gold as the safest investment.
News about China's has positive impact on gold prices. The price of gold continues to maintain its position up since the announcement of the Fed's stimulus. As you know, the Federal Reserve on Sept. 13 announced a third round of quantitative easing program to boost the global economy. This has sparked fears that the dollar would cluck over rising inflation.
Plus this month, the European Center Bank plans to buy bonds member states to combat the European debt crisis. While the Bank of Japan injects funds worth 10 trillion yen, equivalent to U.S. $ 128 billion to fund the purchase of assets. While in China, the local government agreed to increase infrastructure spending.