Tuesday, December 13, 2011

Gold Price- Free Fall Due to Bad Sentiment

Gold price tumbled again on Monday (12/12). The condition of Europe has still worrying-at least for market players. Market players pessimistic about the effectiveness of the European agreement last Friday so the investors away from commodities and bought dollars.

February gold futures fell $ 25.30, or 1.5% to as low as $ 1.692 per ounce in electronic trading session of the European time. Gold fell to below the psychological level of $ 1.700 in Asian trade. However, investors can hunt for loopholes to get current prices tend to oversold.

Price correction this time to make vanished gain scooped since Friday's regular trading session at NYMEX. Tracked the dollar index rose to 79.02 from the level recorded in North American trading session on Friday (78,622). Positive performance of the dollar has weighed the price of gold.

European stock markets also fell on Monday after Moody's Investors Service stated that the resolution of Europe last week did not have a major impact for efforts to solving the crisis. Thus, credit rating in many European countries still in betting.

Bad Sentiment for gold increasingly strong after an analyst doubted the prospects of demand from developing countries. Considering China's inflation data last week showed a sharp decline and India cut its growth target countries for the financial year ended March 2012. Gold is currently monitored at the level of $ 1,655 per ounce.

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