Wednesday, January 11, 2012

Chinese New Year, Gold Price Rises

Gold futures contracts reached the highest price in four weeks, in New York, Tuesday (10/01/2012) local time, along with the weakening U.S. dollar against several major currencies.

Gold futures contract for February delivery rose 1.5 percent to 1631.50 U.S. dollars per troy ounce (equivalent to 31.1 grams), at the Comex, New York. This is the highest closing price since December 13, 2011. The U.S. dollar weakened so advantageous for gold and commodities.

The weakening of U.S. dollar during the past two days because of a sign that European leaders are taking further steps to resolve the debt crisis in the region. That way, the MSCI worldwide equity index rose 1.6 percent, while the GSCI StandardPoor's spot index of 24 commodities of raw materials rose 1.5 percent. That achievement gains fifth in six trading sessions.

Gold prices also are expected to continue to rise in line with the increased gold demand in China, Taiwan, Hong Kong, Vietnam, and Thailand ahead of Chinese New Year. New year's series of events will start on 23 January. Physical demand (for gold) jewelry and investment are strong enough since the price below U.S. $ 1650, especially the Chinese buyer, quite active.

Analyst also predicts the demand for gold from the country of the world's second-largest gold buyer is likely to increase during January despite the price up to Chinese New Year.

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