Friday, October 28, 2011

Gold price shines again

Gold price surged again touched its highest level in one month after European leaders agreed on a rescue plan for the debt crisis. This lifted sentiment in financial markets. As known European leaders have agreed on a rescue package from the debt crisis. This makes the euro strengthened against the U.S. dollar.

The spot price of gold in trading Thursday (10/27/2011) touched U.S. $ 1728.11 per ounce from U.S. $ 1722.69 per ounce is a rising fifth time. While the futures price of gold also touched the highest level at U.S. $ 1,729.8 per ounce from U.S. $ 1,724.2 per ounce.

Gold prices rose on expectations of a fairly well on the European crisis management plan. The increase in the stock market and solid economic data from China also appear to provide strong sentiment for gold price movements. Optimism for China's economic growth will push up prices of all commodities, including gold

Gold price rose for two consecutive days amid optimism that the EU will soon find the best solution to rescue the European crisis. It is estimated that the recapitalization will be the first step has been approved to avoid a banking crisis becomes a systemic problem.

Gold price also rose in the U.S. because of concerns about the existence of the U.S. Central Bank plans to buy securities in the third round of a large number intended to improve economic growth, could trigger inflation. Gold received support because there is a general consensus that the Federal Reserve will provide a stimulus to support growth in the U.S. Currently the investment began to return to gold as fears of debt crisis in Europe is not yet clear ends and demand for hedging from the possibility of inflation.

Gold will move with stable in the range area of 1.700 U.S. dollars / oz-$ 1.720 / oz next few sessions, according to technical analysis MKS Finance. Resistance level in the range of 1.750 U.S. dollars / ounce. Spot gold moved around positive territory in early trading on Asian markets with high levels at $ 1,749.56 / oz and a low level at $ 1,741.70 / oz. "The price of gold was helped safe-haven demand". Strong support level of gold around the MA 100-day at $ 1.670 / ounce and MA 21-day at $ 1.668 / ounce and MA 7-day at $ 1.658 / ounce.

Strong performance of silver helps to reduce the ratio of gold / silver. The ratio of gold / silver currently around 49.56 from 51.60 on Thursday (27/10). Spot gold was at $ 1,743.90 / ounce, down $ 1.80, while silver $ 35.19/ounce, up 10 cents from its closing level.

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