Gold prices moved lower as the debt rating downgrade of nine European countries which show such a prestigious regional economic conditions increasingly worrying.
At the end of last week, global ratings agency S&P has lowered the long-term debt rating for the nine European countries including France and Austria, as well as dropping a negative outlook on 14 countries. Only Germans that still survive in the AAA level.
Furthermore market players will focus on the negotiations between Greece and lending institutions to realize the bailout.
Gold prices fell 0.3 percent to 1634.94 dollars per ounce on Monday (1/16/2012) after the end of last week also dropped 0.7 percent. Thus, this precious metal prices fell back below the average price for 200 days, U.S. $ 1637.89.
U.S. gold price also fell 0.3 percent.
Gold spot price was under pressure by strengthening the dollar after a decline in the euro zone credit rating by Standard & Poor's (S&P) on Friday, while safe-haven appeal should still get a new strut anxiety over Europe's debt crisis.
Gold posted its biggest daily attenuation in 2.5 weeks on Friday, after France and Austria hit by downgrade among nine other European countries. On this day, Gold is also still corrected at the possibility of targeting vulnerable areas of US$ 1600, during the gold is still survive under the area of US$ 1655. Support looks at the area nearest $ 1615 & 1610.
Nevertheless, gold attenuation is predicted only temporary, as the outlook for monetary easing in some countries should be supportive for gold, in addition expected the purchase of gold by central banks as well as the continuing escalation of tensions in Iran still has the potential to sustain gold after suffering a deep correction.
The gold market has not attracted the investment sector. It seems that the market will move ranging between $ 1.630 and $ 1.660 per ounce. We are waiting for the break up $ 1.700 to trigger more investor interest.
No comments:
Post a Comment