Wednesday Gold Reaches the Highest Point in the Past Four Weeks
In London, gold reached the highest point it has in the past four weeks, when the dollar weakened against the euro. When the dollar’s value reduces, the precious metal’s increases, stated Afshin Nabavi, senior VP at Geneva based MKS Finance SA. With speculations that the leading economies in the world will join hands to face the debt crisis in Europe, the dollar dropped.
According to Charles Evans, the president of the Federal Reserve Bank of Chicago, the recent data from the US economy indicates that there is a need for a policy that is highly accommodating.
Safe Haven Investors have been Cautious
According to Nabavi, since December, investors with a preference for safe-haven assets have been quite cautious about what they put their money in. In case the investors return to the market, there is a good chance that there will be plenty of upside.
Gold bullion for June delivery went up by 1.3%, to reach $1,637.40 per ounce. This is the highest the precious metal has been priced since 8th May. However, a little after 11:20, the price had dropped to $1,633.38 per ounce. On Comex, New York, the future for August delivery was $1,634.60, 1.1% higher.
Precious Metal Rose by 4.5%
Following 11 successive yearly increases, the precious metal rose by 4.5%. At the fixing on Wednesday, gold went up from $1,606 to $1,633.25 per ounce in London.
There were no rises on the 4th and 5th of June, owing to the public holiday in the UK. Jun Azumi, the finance minister in Japan stated that Central Bank governors and G7 finance ministers indicated that they were prepared to assist Greece and Spain move their public finances on a platform that is sustainable. Economists believe that officials from the European Central Bank who are meeting in Frankfurt, will retain interest rates at 1%.
According to Evans, one of the most important steps to be taken in the near future is towards finding a way more accommodation can be delivered. This will have to be provided for fiscal and/or monetary policies. This is crucial because it takes a lot more money in the current economic climate to reduce unemployment. In case the countries don’t take aggressive actions, the economy’s capacity will reduce for several years to
No related posts.