Friday, September 28, 2012

Factors that Drive Gold Prices This Week

Gold prices recorded the highest increase in the last two weeks in New York (Sept 27th). Bloomberg data shows, at 13:42 am New York time, the price of gold futures for December delivery rose 1.5% to U.S. $ 1,780.50 per troy ounce in Comex, New York. This is the highest gain in two weeks, with increasing expectations for additional stimulus from the Chinese and the growing concerns in the Euro zone due to the new austerity measures by the Spanish. Spain announced new measures to cut budget expenditures and forming an independent authority to oversee the government's pledge to cut the budget.

Economic uncertainty in Europe makes the price of gold rose. Throughout the year, the price of gold has soared by 14% and jumped 11% in the third quarter. Positive trend in gold prices this time triggered by the actions of central banks increasing stimulus to revive the economy. The increase in the price of gold is also associated with investors betting on China stimulus. They speculated, the government of China will be poured more stimulus to support the economy. Conditions that could potentially boost demand for gold as the safest investment.

News about China's has positive impact on gold prices. The price of gold continues to maintain its position up since the announcement of the Fed's stimulus. As you know, the Federal Reserve on Sept. 13 announced a third round of quantitative easing program to boost the global economy. This has sparked fears that the dollar would cluck over rising inflation.

Plus this month, the European Center Bank plans to buy bonds member states to combat the European debt crisis. While the Bank of Japan injects funds worth 10 trillion yen, equivalent to U.S. $ 128 billion to fund the purchase of assets. While in China, the local government agreed to increase infrastructure spending.

Tuesday, September 25, 2012

the Gold Price Recovery

Gold prices moved up today after yesterday gold has corrected from its highest point in seven months. Some stimulus measures from the central bank is still expected to be able to limit the weakening of gold. the price of gold is recovering from the low point during the week in the previous session when the gold price was down with the prices of other commodities, while data from Germany blew negative news regarding the global economic growth, giving a boost to the U.S. dollar. Investors continued to hunt for gold, sent of ownership in ETF to a high record, with the expectation that the stimulus measures by the central bank will continue to support positive movement for gold price. Spot gold moved up 0.1% to $ 1,765.85 an ounce, after falling to a low week at the $ 1,755.30 in the previous session. While U.S. gold futures rose 0.2% to $ 1,768.50. Easing of monetary policy in such a way was triggered investors to take refuge in gold in order to keep the risk of rising inflation in case of more money printing by central banks. Besides the condition of low interest rates also contributed to gold's appeal. Most analysts still view the current weakness in gold prices is temporary, with the target rising to a level of $ 1.950 is still considerable potential.

Tuesday, September 4, 2012

the Gold Price Predictions of the Week: Gold to Pass $ 1700

Gold Rebounds just started. Gold steady for traded near a five month high on Monday, supported by the head of the Federal Reserve's indication last week that the U.S. central bank may take action to stimulate growth and also by evidence of a significant increase in investor demand.

Gold rally seems to be triggered by quantitative easing. It was the beginning of a boost up towards US$ 1700. Gold will come out of the movement ranging and will pass the US $ 1700 due to the central bank's monetary easing. Gold is trying to get past the psychological resistance level of $ 1700 and when it successfully penetrated there will be additional potential price increase of US $ 100.

Supply disruption and the stimulus expectations are the main factors driving of gold prices today and overall has pushed prices to a level that is high enough.

Since Bernanke's comments at Jackson Hole on Friday, most analysts see there are still opportunities of gold to penetrate the highest level in 2012. In addition there are many additional evidence that the interest of investors for gold has rise again both in terms of physical gold demand from the jewelry industry in particular, besides a fundamental factor still suggest rising gold prices and speculative actions of investors in ETF gold assets recently reported to reach the highest record this week.

But that is quite interesting, increase in the price of gold for euro more rapidly than the price of gold for the U.S. dollar, which gold prices in the euro has surpassed the highest level in 2012, and to within 2% of the highest price of gold last year's.

Looking ahead, traders will await the ECB monetary policy and commentary ECB President, Mario Draghi on Thursday. Estimated that the interest of investors for gold is enhanced if the ECB to take steps to increase the stimulus as well as the response of investors to the policy of the Fed.

Technically, it could be a bullish intra day penetration but requires consistent and daily closing above the US$ 1704 area to trigger further bullish momentum targeting the next resistance targets in US$ 1712 and US$ 1731. Nearest support visible in the area in US$ 1681, dropped again below the area is still an opportunity to correct short-range US$ 1675. But the weakness in this phase are still reasonable and can be considered to be temporary, as long as the price is still stuck above the US$ 1660 area, the bullish scenario is still more dominant.

Friday, June 29, 2012

Gold Prices Depressed to the worst quarterly decline since 2004?

The price of gold contract for delivery in August recorded a rise of 0.2% to U.S. $ 1552.90 per troy once on the Comex, New York, after yesterday (June 28), dropped to its lowest level since June 1st.

At 6:03 pm Singapore time, the future contract at the level of U.S. $ 1552.70 per troy ounce. If calculated, since the end of March, gold prices have tumbled 7.1% and to the worst quarterly decline since 2004. Meanwhile, gold prices in the spot market is not much to record changes in the position of U.S. $ 1552.50 per troy ounce.

On the other hand, the contract price of silver for September delivery was not much change in the position of U.S. $ 26.325 per troy ounce. Yesterday, the same contract fell to its lowest level in 19 months. If calculated per quarter, the decline in the price of silver has reached 19%.

Monday, June 25, 2012

Gold Price Predictions this Week - the Price of Gold will still be Depressed

The price of gold will continue to decline. Analysts predict a week gold prices will continue to go down and hard uphill. Economic data in the United States and European countries that still have not recovered to be the reason.

Policy of the Fed coupled with the release of economic data that does not encouraging the market threaten gold prices. Some of the data are manufacturing data in Philadelphia dipped to -16.6 from -5.8 previous level. Similarly, U.S. home sales in May fell to 4.55 million from 4.62 million previously.

European economic data has also not good. Such as, the European Union manufacturing data in June plunged for five months. Meanwhile, Moody 's Investors Service cut its rating of the world's top 15 banks. This raised fears Europe's fiscal condition.

Last week was a bad week for the price movement of gold. Previously, the market had hoped to ease Europe's debt crisis and the U.S. continued stimulus. All hope was dashed after the G-20 meeting did not produce a solution which could dampen further volatility crisis. To date, there has been no sentiment that could lift gold back to the level of U.S. $ 1,600 for a week. As long as gold price does not meet the level of U.S. $ 1,520 during this week the pressure drop can still be restricted.

Technically, gold prices still consolidation, tend to weaken. It was shown from the Bollinger band indicator 20 is under the middle Bollinger confirm bearish trend in gold. Moving Average is also close to 80% lower Bollinger. Stochastic weakened. There are only two indicators showed a positive signal that the Moving Average Convergence Divergence and Relative Index Streght. Therefore, gold price predictions of the week will move in the U.S. $ 1,550.23 - U.S. $ 1585.70.

Gold prices that are cheap actually allows the budget hunting action of the world's largest gold consumer. However, the economic conditions of China and India as the largest importer of gold is slowing. Automatically, the demand for gold is also reduced. Investors can not expect an increase because the two countries will not buy gold in large quantities.