Gold Prices Gaining on Concerns in Europe
Gold gained this week, but Eurozone concerns are keeping the market volatile.
Gold gained this week, but Eurozone concerns are keeping the market volatile.
Gold is often seem as the ultimate inflation hedge, but perhaps it's time to reconsider.
The minutes from a Federal Reserve meeting suggest that it believes inflation remains under control, which resulted in overall spot market gold prices depreciating by about two percent this week.
Gold posted gains for the quarter, but has not maintained its momentum. Changing conditions and sentiment suggest the metal may struggle to recover in the near term.
Gold prices started off the week trading higher based on Monday’s news that Federal Reserve Chairman Ben Bernanke believes the United States' economy has to grow more quickly to reduce the unemployment rate. Overall, spot market gold prices have appreciated slightly by about 0.7 percent this week.
News from India, China, and Mali worked against the gold markets last week.
Gold prices contracted slightly this week , to the lowest price since January, primarily due to reports of weaker manufacturing data from China and Germany. The HSBC Flash Purchasing Managers' Index indicated that China’s manufacturing has contracted for a fifth consecutive month.
If Iran isn't on gold investors' radar, perhaps it should be. With the effects of sanctions and inflation intensifying, the nation may be bullish for gold.
Strengthening investor optimism regarding the US economy and a sharp rise in treasury yields have caused a decline in gold prices and greater demand for US dollar-denominated assets.
Based on analysts' forecasts many investors were expecting 2012 to be another strong year for gold. But looking at the market recently may cause some investors to wonder if the professionals got it right.
Get our independent commentary on gold trends and companies delivered to your inbox.