In this week the price of gold futures advanced 3.2 percent, the most since early December 2011. Gold prices rose for four days earlier, which is the longest rally since late October. The rate of gold prices triggered by the anxiety is still Europe’s debt crisis. Moreover, rising political tensions due to Iran’s nuclear program, which encourages safe-haven demand.
But in trading, the price of this precious metal slipped, ending the longest rally in 10 weeks. Gold futures for delivery in February fell 0.2 percent to the position of 1616.80 U.S. dollars per troy ounce at 1:43 o’clock at the Comex in New York. Gold falls as dollar surges have dampen demand for the yellow as an alternative asset investment.
Dollar exchange rate rose to its highest level against the major currency pairs a year. The trigger, a sharp decline in the unemployment rate in the U.S., while European confidence index of the economic outlook fell to its lowest level in two years. “Investors are leaning against the dollar since the European factor. The data support the growing good of the U.S. dollar strengthened further,” said Fain Shaffer, president of Infinity Trading Corp., in Medford.
The results of the London Bullion Market Association survey of analysts and traders showed that gold prices will rise 26 percent this year, and the average in the range of 1766 U.S. dollars. “We thought the gold was in so gradually bottoming levels should continue to strengthen,” Jesper Dannesboe prediction from Societe Generale SA in London.