Gold prices today: trend remains positive

Gold prices remain at the top

In brief: Prices of gold will rise to new highs today, with the overall positive mood of the market.

Gold prices are higher and higher. On Thursday, June 17 quotes for gold reached a new record high against the withdrawal of investors in asset-seekers after the publication of negative U.S. economic data. As a result of trading on the COMEX, division of the New York Mercantile Exchange (NYMEX), quotes gold futures rose by 18.20, or 1.5%, to 1248.70 dollars per troy ounce, quotes, silver futures rose 34 cents, or 1.8%, to 18.78 dollars per ounce.

The price of gold on the spot market in the U.S. amounted to U.S. $ 1245.00 per troy ounce (+15.30 USD). On Thursday 17 June futures on precious metals closed with an increase in the price of the following factors: 1 – Economic data – publication of data, which showed higher than expected number of initial applications for unemployment benefits in the U.S. (according to the report the Labor Department the number of applications last week rose by 12,000) and the disappointing performance of the productive sector of the country (business activity index Philadelphia Fed fell to 8 bp to 21.4 bp), supported prices of gold. Some investors prefer to invest in gold as an asset of refuge during the decline of quotations in other markets; 2 – gold as an asset of refuge – the participants of the market again to buy gold as a currency of refuge against continuing concerns about the debt crisis of Europe, who took over Greece , Spain and Portugal, and recently has spread outside the euro zone, Hungary. Gold prices also reached a record high when expressed in euros, which indicates a more widespread demand for the precious metal as an alternative currency, and thus secure the asset.

Prices of other precious metals, which are widely used in industry – silver and platinum group metals – closed with an increase in price, following the price of gold.

From the news it may be noted that in June gold imports by India, the world’s largest consumer of the metal, may fall by half to less than 15 tons – from 29.9 tons a year earlier. The reason for the fall will be near-record prices, coupled with the rainy season. The beginning of the rainy season usually increases the demand for seeds and fertilizers in India, which reduces the amount of funds that people can spend on the purchase of gold. June and July are traditionally bad months for trafficking in gold, especially if prices are high. 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.

Igor Tringlers
2010-06-18 10:03, Commodities.

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