Gold price predicted to rise again. However, gold prices fell 2.2% in last week. Things that may seem contradictory indeed. Gold support level is predicted to be in the range of U.S. $ 1,600 and will rebound this week.
Gold price may rise as costs spike in Spain. It triggers the anxiety that Europe is still working hard to deal with its debt crisis. The condition is that then increases the demand for gold as an alternative investment. With the condition of Spain that has not improved, the European debt remains a major concern of investors.
U.S. employment data released yesterday, would raise the price of gold in London. Precious metals continued its rally for a second day. Gold bullion for immediate delivery rose 0.3% to U.S. $ 1636.43 per ounce toy market in London, last weekend.
Investors back to collect the gold after the U.S. reported the addition of workers in March under the market prediction. Their industry just add some 120 000 workers throughout March. Release was missed than economists forecast that predicts the addition of 205 000 workers. The data then increased projections for the Federal Reserve to implement additional stimulus measures to spur economic growth in the country.
Previously, based on the results of the Fed's last meeting which was released April 3, indicated the central bank will delay additional monetary stimulus, except for the expansion of the economy falters.
As a note, the gold price has surged 86% since late 2008, when the Fed set interest rates at a low level, and disburse the stimulus in the form of asset purchases worth U.S. $ 2.3 trillion. Gold moves up in an anemic spot trading on Friday after a disappointing payrolls data from the U.S. to revive hopes of additional stimulus by the Federal Reserve.
No comments:
Post a Comment