Monday, November 21, 2011

Prices Fell the Glow Gold Dims

Gold is usually used as a safe place to protect the value of assets in the future economic shocks, does not show the performance that should be in the middle of high macroeconomic uncertainty because most investors do not think gold as a safe haven asset again. Gold is only considered as ordinary commodities.

Commodities which priced in U.S. dollars has become more expensive in the eyes of investors who hold other currencies when the dollar higher. Analysts say that gold is likely to follow the movement of the forex market until the end of this year amid the instability of the situation in the eurozone.

Spot price of gold fell 0.5% on Monday after being posted its biggest weekly fall since September, as investors which still worried even after the Spanish rightwing opposition party won the election and is expected to launch which dramatic recovery actions.

Spot gold moved down about 1% to $ 1,717.79 per ounce, after weakening in the week more than 3%. U.S. gold price fell 0.4% to $ 1.719.

Gold can be weakened to 1.680 U.S. dollars / ounce, in the short term, according to Barclays Capital based on technical analysis. gold price fell 3.6% last week amid concerns over European debt crisis.

Gold prices fell as the strengthening of dollar. Equity markets deviate due to anxiety over contagion European crisis and uncertainty the world economy and financial markets. Barclays added the price of gold falls below $ 1.750 / ounce associated physical demand decreased. Spot gold was at $ 1,715.80 / ounce, down $ 9 from the closing level.

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