Wednesday, November 9, 2011

Gold Price Got through US$ 1800

The price of gold futures through 1800 U.S. dollars per troy ounce (equivalent to 31.1 grams) for the first time in 7 weeks. This occurs because of concerns the European Union leaders are not able to overcome the debt crisis in the region thus increasing demand for gold as a hedge.

Current conditions in the European Union, Italian Prime Minister Silvio Berlusconi failed to garner the most votes in a routine vote in parliament on Tuesday (11/08/2011) local time. These conditions trigger increasingly calling Berlusconi to resign from his position.

Whereas conditions in the United States, Governor of the Federal Reserve, Ben S. Bernanke, gave a signal that monetary stimulus may be needed to reduce unemployment, while the European Central Bank unexpectedly lowered its base rate last week.

The chaos in the EU has brought fear back on gold trading. The new wave of easing policy by the central bank also helped gold price.

Gold futures for December delivery rose 0.5 percent to its price 1799.20 U.S. dollars per troy ounce at 1:47 o'clock PM, at the Comex in New York, gold price earlier touched U.S. $ 1804.40, which is the highest position since 21 September 2011.

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