Gold prices grow at the glow of European recession

The problems of the euro area have become the basis for the growth of gold prices.

In brief: Gold prices began to boom after new reports of negative news from Europe. Gold is the most attractive investment for investors.

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.

“Obviously, gold is the winner – said a senior analyst at Resource Mine Life Pty Gavin Wendt. – The situation in the debt sector will almost certainly spread to other countries, notably Spain and Portugal, which will be for the euro even more catastrophic consequences. ” The main factor contributing to the increase in gold prices remains tense situation in the economies of individual countries in Europe. Market participants feared that the planned in France, Greece, Portugal and Britain austerity measures will adversely affect economic growth in the region. In addition, it is likely that examples of these countries followed by other EU members, the level of budget deficits which are also quite high. The market of the precious metal is also benefiting from investors’ concerns related to the prospects for the currency market. Experts note that the multibillion-dollar infusion into the global financial system can not affect the long-term prospects of individual currencies, which will support prices of gold. Thus, the euro to the dollar in trading on Monday fell to a minimum of 18 April 2006 marks – 1.2235 dollars per euro.

Ukrainian Globalist
2010-05-17 11:19, Commodities.

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One comment к “Gold prices grow at the glow of European recession”

  1. Guava Says:

    Gold fell to a one-week low in London as stock advances and a rebound by the euro curbed demand for the metal as a haven asset.

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