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.

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.

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.

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%.

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.

Gold Prices Fell in Line with Euro

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.

Gold Price Eroding

Futures gold prices for June delivery in New York are flat today. At 8:16 pm Melbourne time, the gold contract for June delivery was in the position of U.S. $ 1636.40 per troy ounce. Throughout this week, gold prices for this contract was down by 1.7%.

Meanwhile, the contract price of gold for fast delivery are also not much listed changes in the level of U.S. $ 1636.07 per troy ounce. Thus, throughout the week, gold prices for this contract was down 1.6%.

While the contract price of silver for July delivery rose 0.3% to U.S. $ 30.09 per troy ounce and is toward a weekly decline of 4.2% this week.

Yesterday, gold prices recorded the biggest drop in three weeks after the European Central Bank refrained from adding more stimulus into the financial system at a meeting in Barcelona.

The factors causing the price of gold fell
Gold is now seen as a physical commodity rather than a safe haven asset or hedging tools. The decline in gold prices occurred after unemployment data (Jobless Claims) in some countries jumped sharply. This is fueling the fears that the global economy will slow. Mere information, the unemployment rate in Europe surged to its highest level in 15 years.

In addition, gold ownership in exchange-traded products fell to its lowest level in three months. The data compiled by Bloomberg show, yesterday (May 2), gold ownership in ETP fell to 2381.045 per metric ton. This is the lowest level since February 1.

Another factor in the decline in gold prices is the strengthening U.S. dollar against the euro.

Gold Price is Still Under Pressure

Gold prices fell on Wednesday as the decline in the stock market and other commodities, following a disappointing employment data of U.S. private sector and weak physical demand, adding to the decline in gold for the second day. Gold, which this year follows the performance of risky assets, is under pressure after ADP report showed the addition of workers of at least in seven months in April, adding to worries that the economy has lost its momentum.

Market players said the ADP data, does not seem strong enough to alter the view that good U.S. economic data recently has eroded expectations of additional quantitative easing by the Federal Reserve. The gold market is awaiting the data of April nonfarm payrolls on Friday for clues about whether the U.S. central bank will keep interest rates near zero for several years and use the stimulus to boost economic growth. News on Friday will have a big impact on gold prices. Unless payrolls data on Friday is bad, it's not going to drive up prices based on expectations of QE.

Precious metals traded down with the movement of gold prices continued to show weakness in early trading in Asian session. Release of U.S. jobs data that misses the prediction failed encourage investor interest in gold. It is also due to comments from members of the central bank indicating that the new stimulus measures will not be done in the near future.

The price of gold at $ 1,652.10 / ounce, drop $ 1.60 from its closing level in New York, silver at $ 30.60/ ounce, down 5 cents, platinum at $ 1,558.50 / ounce, drop 50 cents and palladium at $ 664.80/ ounce, down 20 cents.

In terms of technical, gold resistance level in the range of 100-day MA at $ 1.670 / ounce.

Improved Performance of U.S. Manufacturing, Gold Down

Gold prices climbed on Monday in the improving technical outlook which can increase the gain last week, but gold closed slightly down for the month of April. Gold fell about 0.2% in April, for the third month and the longest monthly decline since 2000. A number of strong U.S. data and waning hopes of additional stimulus from the Federal Reserve has eroded the investment interest in gold.

Gold declined from a high level of 2 weeks on Tuesday as the dollar rallied due to the U.S. manufacturing sector data better than expected, dismissed speculation that the Federal Reserve will again ease monetary policy to boost the economic growth. The increase in U.S. manufacturing activity would provide additional evidence would not need further monetary injections from the Federal Reserve.

Without confirmation of support from the Fed on the U.S. economy, the rise in gold can be limited in the short term. In the near future, I do not see the possibility of gold through the $ 1700 level. Gold needs a catalyst to continue the rally. Can say, the level of $ 1.700 per troy ounce and above require other potential catalysts that trigger the Quantitative Easing (QE). It is definitely a very loose monetary policy would continue, but whether there is a need for QE III.

However, I do not see the potential for a significant fall in gold prices. Gold seems to have scored the lowest prices, and this can be a good start to add precious metals ownership.
We are in a condition where the market does not just follow the fundamentals, but more dependent on the market sentiment. The latest news is very influential on the price movement of gold.

The latest news is being awaited: release of U.S. payrolls data on Friday. This news would be one of the things that affect the price of gold. This news would be one of the trigger price of gold. If it's a bad news would raise the price of gold.

Physical Gold Demand in India Declined

Gold futures contracts fell for three consecutive months following the concerns of physical demand in India declined and the Spanish economy entered recession in the second condition since 2009. Investors prefer cash now considering European.

Gold futures contract for June delivery slipped 60 cents to 1664.2 per troy ounce (equivalent to 31.1 grams) on Monday (4/30/2012) at 1:44 PM, at the Comex in New York. This price has dropped 0.5 percent in April. The price has declined for 3 months is the longest decline since March 2001.

Physical gold demand in India in the festival Akshaya Tritiya, which is a momentum to buy gold in India last week, demand for physical gold was disappointing. This condition was exacerbated by the strengthening U.S. dollar against euro after reports that Spain's economy declined during the first quarter of 2012. In terms of physical demand, purchasing gold in India was not shining. that's the problem.

Gold Prices are still Stable

Gold prices hold near the high level for 2 weeks on Monday linked the prospect of a safe-haven buying, with the U.S. dollar is depressed due to the release of GDP data under estimates and speculation that the U.S. Federal Reserve is likely to ease policy to trigger the economic growth.

The U.S. economy, the world's largest economy expanded 2.2% to annual basis within 3 months of this year, below economists' expectations at 2.5%.

The spot price of gold almost did not experience any movement in the $ 1,663.04 per troy ounce, gold has moved up to $ 1,667.11 last Friday, its highest price since 13 April, after the release of disappointing U.S. growth data and fears of European debt that triggered the investment request.

U.S. gold contract for June barely moved in the $ 1,664.20 per troy ounce. Precious metals mixed with gold traded at a high level of two weeks in early Asian trading. Precious metals are experiencing intense pressure this month, closed at $ 1,667.80 / oz.

Gold price is expected bullish and move at the potential area to $ 1.700 - $ 1.717 / ounce.

Interest in gold from the official sector and supported by physical demand on the stock trading is still strong, but the ability of gold to restore the safe haven interest in the near future is still not strong due to market conditions re-focus on European countries.

Let's Watch U.S. GDP Data and the condition of Europe

Accurate data is very important to making good business plan. Therefore, the release of data from an institution so long awaited by businesses, including investors.

The emergence of the U.S. GDP data release on Friday may give directions guide the movement of financial markets, as investors seek guidance signals from the country that still gives a mixed signal. While the GDP data is considered as guidelines that likened see previous events, traders hope that this report can be a road map for the momentum that will emerge in the second quarter.

Jobs data itself is still a major concern after data showed the weakness in March that the non-farm payroll numbers that come up with half of number that appears in February. An increase in weekly unemployment claims provided by the weak increase of 120,000 jobs in March, has raised fears for the strengthening of the non-farm payrolls in April, which will be released next week. Jobless claims are at levels higher than Thursday, which appeared in number 388 000, beyond expectation of 375,000.

Meanwhile, from Europe, S & P cuts debt rating of Spanish
Standard & Poor's 500 cut its debt rating of Spain as much as one level of A to BBB +. S & P argued that Spain should continue to provide fiscal support to the banking sector as the contraction in their economy. In addition, S & P also lowered the short-term debt rating of Spain from A-1 to A-2. As for the outlook of this debt ratings is negative.

Just information, the burden of the cost of debt term of 10 years Spain has jumped about 70 basis points so far this year. This causes the Prime Minister Mariano Rajoy hard to convince investors about the Spanish economy, in the midst of high unemployment and a contraction in the economy.

S & P saw Spain's budget will continue to be eroded amid the economic contraction that occurs. At the same time, they also see that the Spanish government will be poured even more fiscal support to the banking sector. As a consequence, there will be an increased risk in Spain.

Gold Prices Jump

Today, contract price of gold recorded the highest rise in the last two weeks. At 13:48 (26/4) New York time, the price of gold contract for June delivery rose 1.1% to U.S. $ 1660.50 per troy ounce on the Comex, New York. This is the biggest jump since April 12nd. If calculated, the price of gold has surged 6% so far this year.

There are a number of factors that allegedly affect the gold price movements. First, the market speculated that the Federal Reserve will increase flushing the stimulus program to boost the U.S. economy.

Second, the U.S. Labor Department data showed an increase in jobless claims from the estimated market last week. Just you know, the number of Americans who filed initial jobless claims fell 1,000 residents to 388 000 in week ending April 21 from the previous week as many as 389 000. Meanwhile, the median 48 economists surveyed by Bloomberg predict as many as 375,000. U.S. labor market began to slow. This will encourage the Fed to conduct policy easing. This is the focus of investors today.

Not only gold, silver contract prices are also soaring. Silver futures prices for July delivery jumped 2.8% to U.S. $ 31.276 per troy ounce on the Comex in New York. This is the biggest jump since April 12nd.

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.

Euro Stronger, Gold Prise Rose

Spanish bond auction results received positively by the market player has improved a good sentiment and helped boost the performance of Gold prices back above $ 1642 per troy ounce, while the U.S. dollar still fell -0.06%.

Eurozone fiscal mess has overshadowed the investor within a few years, the impact on gold is quite volatile, as investors attempt to discount any situation that often changed in short term.

This makes the price of gold moves wildly in the range of $ 1615 and $ 1685 depending on the latest developments on the global growth or new concerns about the debt crisis problem.

The results of the Spanish bond auction succeeded in giving relief, where the demand for Spanish bonds worth 2.5 billion euros is quite solid, and the resulting yield on the 10-year tenure in the secondary market stays below 5.9%, as well as insurance against Spain bond defaults also has eased.

For the future, the focus will shift in macroeconomic factors, through reports U.S. weekly jobless benefit claims, existing home sales data and businesses survey on Philadelphia area. Monitored so far Gold traded higher. Gold futures posted gains. At 13:50 New York time, the price of gold contract for June delivery rose 0.1% to U.S. $ 1641.40 per troy ounce in Comex, New York.

Gold price increase coincided with the retention rate of the strengthening of U.S. dollar. One reason is the statement of the International Monetary Fund managing director Christine Lagarde who affirm that the IMF funding would be raised significantly in the middle of Europe's debt crisis. Conditions that boosted demand for gold as an alternative investment.

Euro rose today, this is good news for gold. This means that more money will flow in the financial markets and it's good for the movement of gold.

Nokia Gets Junk

Earlier this week Nokia has received bad news. Monday (16/4) world class rating agency, Moody's Investor Services to downgraded the Finnish company. Moody's decision exactly the same as Standard & Poor's who downgraded Nokia in March.

Nokia was forced to slam its investment rating to below the level of junk. Details in the trim from Baa2 to Baa3. A fairly sharp decline is the reason for Moody's gave this rating. Nokia's stock performance listed the worst in 15 years.

Nokia's efforts to make the transition with Microsoft Corp. failed to embrace the view of Moody's ward. Reasonable this is happening, given that last year the former king of the mobile phone also did not release many products. Last year Nokia introduced its new smart phone product named Lumia. Nokia is difficulty competing with the iPhone and Android.

Gold Price Prediction of the Week : Gold Price Dropped

Gold prices fell -0.32% overall on Monday, after a rebound from its lowest point in the range of $ 1642 per troy ounce after U.S. retail sales data are positive. However reinforcement is still limited due to the tension of Spanish outlook on Thursday ahead of bond auctions this week, prompting profit-taking gold to cover losses on other assets. Fear of inability to get its finances in Spain under control has boosted the cost of bond insurance - in the event of default to the Spanish - to the highest levels record.

Others negative catalysts of gold are the economic slowdown in China, as well as the strengthening dollar factor, plus the physical gold demand from India which has not recovered significantly. Gold trading volume was still below the level of trade last year, even in the month of April only reached 61 percent of trading volume during the month of March. This indicates Gold fever mainly from China appear to have subsided.

Investment managers, including hedge funds and other large speculators have cut exposure to buy gold as much as 8.674 to 109 511 contracts. Technically, the failure of gold to penetrate resistant key US$ 1686 some time ago has been to reduce expectations of a bullish technical signal to reach US$ 1700 in the short term.

Therefore Gold is still potentially weaken, at least while waiting for fresh news from Spain. During a positive impression of economic stability, financial managers will tend to stay away from gold and into bonds with high yield. Concerns about the European financial back on along with the level of bond yields with maturities of 10 years and China's economic growth rate which disappointing would be an issue affecting the gold price movements.

Physical Demand for Gold is Expected to Rise

Physical gold demand is expected to come back with the end of the strike of India's gold trader as a protests to the increase of gold import tax of 2% to 4%. India, and China is one of the world's largest consumer of gold the end of strike of the gold merchant in India and by the gift-giving festival in India, namely Akshaya Tritiya on April 24th could be a possible future recovery in demand for physical gold momentum, especially if the price of gold remained at a fairly low level not far from the $ 1.620 per troy ounce.

Gold jewelry demand in China continues to show growth in 2011 with soaring up to 15% to new record highs, a trend that still seems to be repeated this year, according to precious metals consultants GFMS Ltd.. Wednesday.

Gold jewelery sector growth in China over the past year contrasted with jewelery demand in other regions, including India, mainly driven by rising inflation fears and the continuing growth in domestic fixed income, based on a survey of gold at 2012 conducted by GFMS, a unit of Thomson Reuters Corp.

China jewelery production grew 14.6% to print a new record high at 496 tonnes in 2011, after noted growth of nearly 20% in the previous year. On the other hand, the production of jewelery in India, it fell 3.1% to 701 tons although had scored a highest record 723 tons in 2010. Overall, the global jewelry production dropped by 2.2% in 2011 to 1973 tons.

According to GFMS, the expansion rate of gold demand in Asian giants are incredible, with an average annual growth reached 10% in the last decade. Sales during the post New Year China have shown significant numbers. The continued economic growth and increased interest to own gold as an alternative asset will tend to push Chinese production of jewelry toward a new record this year.

Investors Turn to Stocks, Gold Price Slid

Having previously traded up, now, recorded a decline in gold prices. Gold price eased in Asian markets because of the rebound that occurred in the U.S. stock market. Gains in the stock market has lessened the demand for gold as a safe haven.

Gold futures for June delivery on the Comex - Nymex move to the level of U.S. $ 1659.80 per troy ounce in trading at 8:17 Melbourne time. Meanwhile, gold for immediate delivery slid to U.S. $ 1659.53 per troy ounce.

Yesterday, the price of this precious metal fell for the first time in four days, with the end of the correction on Wall Street. Gold fell 40 cents to U.S. $ 1660.30 per troy ounce in New York at 1:40. Meanwhile, in the three previous days, the price of gold has increased by 2.9%.

As a note, U.S. stocks driving after Alcoa Inc.. opened the earnings season with encouraging results. Therefore, people leaning the stock market today. Investors are turning gold to the form of stock.

Investors may go back to collect the gold as a safe haven. However, until we get clarity on the situation in Europe, gold prices will move in the range of U.S. $ 1,550 to U.S. $ 1,700 per troy ounce.

Gold Price Predictions of This Week

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.