, IncApril 7, 2010 - Gold has extended its two-week rise into the third day (Wednesday, HK time) of the first week of April amid a slew of factors that many analysts believe had influenced the metal’s behavior. Gold prices posted $1334.65, about 0.78% on top of last week’s $1126.10 as of 7:30 a.m. HK time.
Wednesday’s sales figure was a slip from yesterday’s sales that reached the vicinity of $1136. But one analyst commented that gold, along with other precious metals, might “consolidate after ‘profit taking’ following holidays at the weekend.”
Another analyst said that “gold is taking a breather after a good run…” and will “…bounce back.”
The same slew of factors continues to influence gold’s performance. The unsolved Greek financial crisis brought down the Euro for the third day, allowing the US dollar to gain against the Euro. It has been reported that so far, the crisis had cost the Euro 6.4% against the US dollar this year. Greece this month, according to published reports, will launch a multi-billion-dollar bond in the US, a move that many said would put more pressure on the European currency.
Crude oil stayed close to $87 a barrel, its highest in over 17 months brought about by increased demand due to increased economy activity. The stock market is on high energy level. Demand for commodities has risen worldwide, directly influencing gold prices. The US unemployment has been improving. Speculation is rife that the Federal Reserve would not touch the record-low interest rate for fear of jeopardizing the economic recovery that is just teeing off. The speculation made equities attractive to investors.
Ronald Stevens
Senior Staff Writer - GoldPrice.net
