Friday, March 9, 2012

Gold Prices Resumed Strengthening

Gold futures contracts has the biggest jump in two weeks along with the progress of Greece's debt restructuring efforts. It finally looks Greece will perform debt relief, and overall positive sentiment.

Greek conditions then strengthens euro against the U.S. dollar pushing gold as an alternative investment to the U.S. dollar. Gold futures for April delivery rose 0.9 percent to US$ 1698.70 per troy ounce (equivalent to 31.1 grams) on Thursday (8/3/2012) at 1:42 PM, at the Comex in New York.

Risk-taking mentality seems to have been re-possessed by market players. Gold futures price increase is the continuing impact of the strengthening euro against the U.S. dollar.

The euro rose as Greece seems increasingly close to complete debt elimination. Debt crisis in Greece necessarily spread to other European countries. Until eventually cut economic growth in a number of countries. President of the European Central Bank (ECB), Mario Draghi said inflation was likely to violate the 2 percent limit set by the bank this year as the economic crisis in the eurozone. ECB was still maintaining its benchmark interest rate at record low at 1 percent.

In addition, according to information from UBS AG, the possibility of a third economic stimulus from the Central Bank of the United States is the key to the future of gold price movements.

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