Spanish bond auction results received positively by the market player has improved a good sentiment and helped boost the performance of Gold prices back above $ 1642 per troy ounce, while the U.S. dollar still fell -0.06%.
Eurozone fiscal mess has overshadowed the investor within a few years, the impact on gold is quite volatile, as investors attempt to discount any situation that often changed in short term.
This makes the price of gold moves wildly in the range of $ 1615 and $ 1685 depending on the latest developments on the global growth or new concerns about the debt crisis problem.
The results of the Spanish bond auction succeeded in giving relief, where the demand for Spanish bonds worth 2.5 billion euros is quite solid, and the resulting yield on the 10-year tenure in the secondary market stays below 5.9%, as well as insurance against Spain bond defaults also has eased.
For the future, the focus will shift in macroeconomic factors, through reports U.S. weekly jobless benefit claims, existing home sales data and businesses survey on Philadelphia area. Monitored so far Gold traded higher. Gold futures posted gains. At 13:50 New York time, the price of gold contract for June delivery rose 0.1% to U.S. $ 1641.40 per troy ounce in Comex, New York.
Gold price increase coincided with the retention rate of the strengthening of U.S. dollar. One reason is the statement of the International Monetary Fund managing director Christine Lagarde who affirm that the IMF funding would be raised significantly in the middle of Europe's debt crisis. Conditions that boosted demand for gold as an alternative investment.
Euro rose today, this is good news for gold. This means that more money will flow in the financial markets and it's good for the movement of gold.
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