The stock market started the day with the U.S. fall. 40 minutes after the opening of trading bulls awoke and started a confident attack. Bears retired after the first breakthrough Dow Jones Industrial Average into positive zone. Dow Jones Industrial Average continues trading in the green zone. Now Dow Jones is 10,172.23 points. The index increased by +35.60 points (0.35%).
Gold price increased at trading on Monday amid fears that the debt crisis in Europe will undermine economic growth in the region and further weaken the euro. In the course of trading on the New York Mercantile Exchange, the June gold futures rose by 0,7% – to 1 236.4 dollars per troy ounce. Since the beginning of this year, the value of gold increased by 13% to the auction last Friday a record 249.40 dollars an ounce.
In Europe, the index added 3.1% in the U.S. – 1,5-2,0%, in Asia, indexes added an average of 1%, Nikkei rose 2.25%. U.S. index futures traded without a single dynamics with minimal changes. Oil prices are now becoming more expensive on 0,2%, Brent above $ 81 per barrel.
Gold prices in the world market has updated the historical maximum. Gold futures on the NYMEX Exchange for delivery in June rose in price at 12.8 dollars and surpassed in 1233 dollars per ounce. In December 2009, the price of gold exceeded 1,226 dollars per ounce.
The recent escalation of tensions in financial markets has played into the hands of the bulls on gold prices, which in recent days has continued to grow, despite the rather significant rebound of the major stock indexes. While the panic on the stock market somewhat subsided, the mood of investors is far from positive.
As a result of trading May 12 on the New York Mercantile Exchange, the July futures on gold prices increased by 1,6% (+ $ 19.5) to $ 1220.3 per ounce, which became the new historical maximum price for the precious metal. To date, gold little cheaper, but the price remains above $ 1200 per ounce.
The world economy experienced a real shock last week. Dow Jones Industrial Average set a record in the fall, the causes of the collapse of major U.S. index remain unknown. The last week (May 3-7, 2010.) became the next test for the global financial system. Investors are not encouraged by the actions of the Government of Greece, as well as decisions taken by the EU and the IMF. The euro last week fell by 3.01% and remains under pressure.
Gold rises in price again on the world trades. The precious metal, which is the most popular in the world comes to growth, after a slight stop. At the 4-hour scale, the gold market there is a possible increase in prices in the fifth wave, because the second and fourth wave is completely suited to its amplitude.
Gold rises in price against the backdrop of an unstable dollar and the weakening positions of all types of raw materials. The first day of winter was more than a positive for gold. Gold prices zoomed past all records of this year to touch over $1,200 dollar an ounce in futures trading, as a weak dollar and rising commodity prices increased the precious metal’s appeal as a hedge against inflation.
Gold becomes the most reliable and effective investment. But is it for a long time?
Probably the gold will not be able to hold its positions but anyway it won’t be cheaper of 1000 USD. So the gold is the winner of the year 2009! Oil, euro and risky investments has remained behind. Only pharmacists created the swine flu have more luck. Today the gold value has got a position of $1118.50 per ounce.
The Goldman Sachs noticed the investors’ increasing interest to this precious metal. They forecast its position of $1200 per ounce closer to the end of the year.