Gold sheen seems to fade soon, leaving the price of 1730 U.S. dollars per troy ounce and opens the possibility to decrease up to 1580 U.S. dollars per troy ounce. Gold prices fell 10.9 percent in September, but rose 2.6 percent this month. The commodity brokers said, the problem in the euro zone will continue to dominate investor sentiment. The situation in Europe will also dictate the market direction.
S & P lowered the Spanish long-term debt rating one level to AA- and motion of no confidence in the Italian parliament also dominated investor sentiment. In addition, a stronger U.S. dollar exchange rate will depress the price of commodities whose price is denominated in U.S. dollars will seem more expensive.
Silver price is expected to be in the range of 35-36 U.S. dollars per troy ounce. The price of gold at current spot market at 1672.70 U.S. dollars per troy ounce. Gold price in futures trading fell from the highest position for three weeks as the dollar rallied (length increase). As a result, demand for gold as an alternative asset down.
The dollar strengthened 0.8 percent against six major currencies since Germany reduce expectations of a quick resolution to the debt crisis of the European Union. Last month, the U.S. dollar strengthened even as much as 6 percent, while gold prices fell by 11 percent. The strengthening U.S. dollar has become a burden for gold.
Market players seem only to wait in line with the volatility of gold prices. No a big action in buying gold right now, investors who own the precious metal is also not willing to let go. Gold futures for December delivery fell 0.4 percent to its price of 1676.60 U.S. dollars per troy ounce (equivalent to 31.1 grams) at 1:41 PM at the Comex in New York. Earlier, gold prices touched U.S. $ 1696.80 price. This is the highest price for a most-active contract since 23 September 2011. Last week, Gold was up 2.9 percent. The increase was greatest for more than a month.
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