Forecast for gold price today

Forecast gold prices remains positive

In brief: Gold prices continue steady rise against the background of uncertainty for investors and the collapse of stock markets.

Forecast for gold prices – the precious metal will continue to go up because of problems in the stock markets. Quotes for gold closed with an increase in the price of the background leaving investors in the asset-seekers in response to concerns about the pace of recovery of the world economy. As a result of trading on the COMEX, division of the New York Mercantile Exchange (NYMEX), quotes gold futures rose 3.50, or 0.3%, to 1245.90 dollars per troy ounce, quotes, silver futures rose 7 cents, or 0.2%, to 18.71 dollars per ounce. The price of gold on the spot market in the U.S. amounted to U.S. $ 1244.90 per troy ounce (+4.50 USD).

Futures on precious metals (gold) closed with an increase in the price of the following factors: 1 – gold as a risky asset (gold is often seen as an asset of refuge in times of economic uncertainty, but it also sometimes traded as a risky asset ) – the ratio of investors to risk in the environment has improved, and consequently, the ratio of risky assets (gold) after allegations of tender of the European Central Bank. Requests for tender was lower than expected, which dispelled some fears about the difficulties that European banks are experiencing with the resources, which, in turn, set a positive tone for the euro helped gold, 2 – gold as an asset of refuge – the market participants again buy gold as an alternative currency and the currency of refuge against the background of falling U.S. stock market, which forced investors to apply to the assets of refuge (gold). Investor sentiment deteriorated after a more adverse than forecast, a report from ADP by the number of jobs created in the private sector (Dow Jones industrial average – 9774.02 [-96.28, or -0.98%], Nasdaq Composite – 2109.24 [-25.94, or - 1.21%], S & P 500 – 1030.71 [-10.53, or -1.01%]).

Prices of silver also closed with an increase in price, following the price of gold. Prices of other precious metals, which are widely used in industry – platinum group metals – have fallen on the bidding results. Demand for platinum and palladium depends on the economic outlook because they are mainly used in the manufacture of catalytic converters in automobile industry. From news can be noted that Vancouver’s largest gold mining company Goldcorp has been informed by the Government of Guatemala that the Marlin mine will be closed. This decision came after months of tense negotiations with the activists, who accuse the company of violating human rights and the negative impact on public health. The mine has been working since 2005. Now it employed 1900 people. Last year, Marlin gave 275.000 ounces of gold, representing 11% of the total output of the company. According to the company’s management, all necessary security measures have been taken. Speculative buying of precious metals from foundations and banks, the use of gold as an asset of refuge as well as lowering the U.S. dollar will provide sustained support for quotations of gold and silver. However, the situation could change dramatically if the dollar will resume its strengthening, as the inverse correlation between the dollar and the prices of precious metals continues. Volatile changes in the currency market may be reflected in the sharp fluctuations of prices for precious metals.

Anrey Torbinski
2010-07-01 14:06, Commodities.

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One comment к “Forecast for gold price today”

  1. Mark and Sue Richardson Says:

    Where the F. does this site get “Todays” news?

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