Along with the fears of Greece potential default on its debts, the gold price has decreased. This decline took place from Saturday (09/11/2011). This is due to action of the investors who sold the precious metal to cover losses in other investment instruments. The price of gold for quick delivery dropped 0.7 percent to 1842.25 U.S. dollar positions per troy ounce (equivalent to 31.1 grams), and reached 1847.70 U.S. dollars in trade in Singapore. Though the price of gold briefly hit 1921.15 U.S. dollars per troy ounce on September 6.
In contrast to the general conditions, the price of gold for December delivery in New York, which is usually contrary to the U.S. dollar, rose by 0.8 percent from USD 1850.20 to USD 1844.60 per troy ounce. Gavin Wendt, founder and director of Mine Life Pty said that the U.S. dollar currency has been sold quite significant, but he can not see it continuously as the U.S. has got a big problem that needs to be resolved.
Gold futures trading fell for the first time in three sessions as traders who sold the precious metal. This was done to cover the falling stock losses for fear of escalating debt crisis of Europe. Globally, stocks fell on speculation of Chancellor Angela Merkel's preparations against Greece in default. Thus leaving a space for the global stock market to be in poor condition.
In contrast to the conditions of gold, the dollar has strengthened to its highest level in six months against six major currencies. In fact, in this September, gold prices had touched a record 1923.70 per troy ounce on September 6, 2011. And now, gold scored a record price in Euro and Swiss francs.
To note, the price of futures gold for December delivery fell 46.20 U.S. dollars or 2.5 percent, to 1813.30 in trading on the Comex, in New York, 1:30 local time on Tuesday (13/09/2011).
Gold has been in market conditions continued to rise for 11 years. An ultimate victory since 1920 in London, along with the diversification of investors other than equities and currencies. The growth of the gold price has reached 28 percent this year, defeating global stocks or commodities. Overall, the gold price has grown 30 percent this year.
Gold prices expected to fall below 1700 U.S. dollars per troy ounce in September 2011. However, the price of precious metals is also estimated to be re-spiked to reach U.S. $ 2,000 price level in October.
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