Gold futures contract shot up, the highest in 10 weeks. For one thing, Iran’s first nuclear fuel production. Now, the price of gold futures managed to break the 1600 U.S. dollars and is expected to reach 1800 U.S. dollars for this year. Gold futures for February delivery rose 2.2 percent to 1600.50 U.S. dollars per troy ounce (equivalent to 31.1 grams) at 1:38 PM on the Comex, New York, It’s the biggest gain for a most-active contract since October 25 2011.
“Fear has returned because of Iran’s trade,” said Adam Klopfenstein, market strategist Archer Financial Services Inc. in Chicago, in a telephone interview with Bloomberg.
Because the Iranian Student News Agency reported, locally made fuel have been included in the atomic nucleus Tehran research reactor after the test performance.
The rising price of gold futures also be caused by a weakening U.S. dollar along with the expansion of global manufacturing. Condition of the U.S. dollar has sparked demand for commodity raw materials that are considered as risky assets. “We also saw the purchase of the commodity because of the weakening U.S. dollar,” added Klopfenstein.
For this year, Blackstone Group LP’s, Byron Wien, gold futures are expected to experience price increases by 15 percent in 2012 to 1,800 U.S. dollars per troy ounce. Last year, Blackstone Group LP’s can predict precisely the gain of gold. Where gold had increased length (rally) by 10 percent by 2011 so as to achieve profits for 11 consecutive years. “Accommodative monetary policy throughout the developed world led to new migration into hard assets by individual investors and sovereign wealth funds,” said Wien Blackstone in his report on Tuesday.