Gold price in world market continue to create a record as concerns about debt problems in the Euro-zone. The gold price today through US $ 1800 for the first time.
Price of Gold for December delivery had touched a new US $ 1801 per ounce in trading Wednesday (10/08/2011) local time before it closed at the level of US $ 1784.30 per ounce.
Increases also occurred in other commodities along with sinking stock markets. Gold used to be an alternative investment when the situation in financial markets bounced. Cash is king, and then the hard assets. People are worried about the decline in currency values and they feel the hard assets will always be valued.
Those who bought gold still see a problem in the U.S. and the EU, an unstable currency markets, as well as the decline in world economic growth. They all refer to gold as the world's most powerful currency.
While the price of gold for current delivery closed at 1781.30 U.S. dollars, an increase over the previous close at 1740.00 the position of the U.S. dollar.
Markets still hit by fears of global economic circumstances. In addition, the riots in London, England are poised to trigger the price of gold continued to bullish. Strengthening gold price reflects not only fear about the Standard & Poor 's ratings. Moreover, the price of gold reflects the overall posture of the currency markets and world economy.
Earlier, JPMorgan Investment Bank on Tuesday (09/08/2011) estimate the spot price of gold will continue to go up to 2,500 U.S. dollars per troy ounce (31.1 grams) at the end of the year. JP Morgan's new estimate is 39 percent higher than the previous estimate of US $ 1800. In addition to JP Morgan, another banks have also changed the estimated the price of gold.
Gold price volatility is also high, due to reduction of U.S. credit ratings. Analyst Colin Fenton and Jonah Waxman said that time before the downgrade, they estimate the price of gold will reach US $ 1800 per troy ounce by the end of this year. But with the present circumstances it seems this view is very conservative.
The new estimate is about US $ 800 higher than the price of gold now. Previously, other bank, Goldman Sachs also increases its gold price forecast. Goldman said his economists have estimated the possibility of U.S. recession is one in three, and probably will happen within the next six months. However, the estimated price by Goldman is much lower than the estimate of JP Morgan.
Goldman estimate the spot price of gold will reach 1645 per troy ounce in three months and 1730 per troy ounce in the next six months.
Morgan Stanley, ANZ, UBS, MF Global and Barclays Capital last week also revised its estimate of the gold price in their research. While gold producers like Barrick Gold (ABX), AngloGold Ashanti (AU) and Randgold Resources (GOLD) also projected gold price keeps rising in recent days.
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