Tuesday, April 24, 2012

Gold Prices Move Sideways

Gold futures fell to its lowest level in two weeks, today (23/4) at 13:42 pm New York time, the price of gold contract for June delivery fell 0.6% to U.S. $ 1632.60 per troy ounce on the Comex in New York. In the previous transaction, the contract price of gold dropped to U.S. $ 1623.60 per troy ounce, its lowest level since April 5. Throughout this month, gold prices have fallen 2.4%.

The decline in gold price occurred as the strengthening of U.S. dollar which in turn cut the demand for gold as an alternative investment. Just information, the mighty U.S. dollar by 0.6% against of currencies in the world. Meanwhile, according to the prediction of Markit Economics and HSBC Holdings Plc, China manufacturing data is predicted will experience a contraction for the next six months. There is anxiety and investors want to hold cash. In addition, the level of production in China is also expected to disappoint investors.

Physical demand for gold is currently very low. Physical gold demand from India and China -two of the largest gold consumer- are relatively decreased after February. Later in, investor interest in gold has begun to fade. Gold price movements are influenced by the strengthening of dollar and the stock market.

The price of gold is expected to get under pressure this week, as the prospect of global stock markets are depressed. Concerns over the condition of the European market and economic data the United States is below expectations, potentially dim out the gold.

Gold is still likely to move horizontally in a limited range (sideways) U.S. $ 1,600 per troy ounce, waiting for a more powerful sentiment.
Economic data now show the movement of gold tends to follow the direction of other assets. Gold prices this week are still able to survive at a low level of between U.S. $ 1,630-US $ 1,680 per troy ounce.

Continuation of U.S. monetary policy became the main determinant of the prospects of this precious metal prices. Well, at the current price range is relatively cheap, gold could potentially be hunted by investors. It could hoist the price but not big.

Given the weekly cycle, Thursday is the perfect time to buy gold. On that day, the most depressed gold to back up on Friday.

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