Declining number of risky assets, including declining demand for gold occurred after the U.S. Nonfarm Payroll (NFP) data in April that weak so that investors are concerned that people's purchasing power will also decrease because the economy weakens. The U.S. NFP number that appears much lower than expected, has boosted demand for the currency market with the status of safe haven as the U.S. dollar, so that automatically help weaken gold denominated in U.S. dollars. Today, gold prices are in U.S. $ 1637.30
But the decline in gold is limited by speculation among investors where the weakening economy would likely trigger additional policy easing from Federal Reserve. Previously, the market is still reminded by the attitude of the governor of the Fed - Ben Bernanke said that QE3 depends on the future economic data.
In addition, gold prices fell as the election results in Europe adds to the anxiety of Europe's debt crisis, after the candidate from the Socialist Party Francois Hollande defeat in Nicholas Sarkozy the election of President on Sunday. Other than that Greece party's pro-bailout suffered a major defeat.
That raises doubts about the ability of Europe to seek measures budget austerity due to this defeat, leading to the strengthening U.S. dollar to its highest level and trigger a 3-week Euro weakness and also gold.
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