Changes to the European Financial Stability Facility could mean a loss in value of the Euro currency in relation to gold and other precious metals.
Articles Tagged "inflation"
Insecurity over Italy’s financial stability make it the latest target of Euro Zone contagion fears and call into question the place the role of gold.
Bloomberg reported that signs of a strengthening economy and possible inflation caused gold prices to rally.
The World Gold Council (WGC) says China’s growing demand for the precious metal may double sooner than its original prediction of 2020 as both private and institutional investors move to increase their holdings as a hedge against international inflation concerns.
The price of gold surged to $1,500/oz on Wednesday.
Gold continued its three day run up $40 per ounce since the start of April. Driven by inflationary fears, political instability and high oil prices, the next key resistance level may be $1500 per ounce. However, as nations raise interest rates, gold may be headed for a correction.
The price of gold remained generally flat Tuesday, up $1.70 to close at $1428.80 per ounce. However, the trend for increasing prices should be supported by rising inflation numbers surrounding sustained high oil prices.
Mixed results from the recent report on the state of the US job market resulted in fluctuating gold prices , however, the larger driving factor for gold futures may be global inflation pressures from the Chinese interest hike.
Kitco's Jon Nadler points to China as the catalyst for gold's recent price chopping.
Larry W. Reaugh argues that gold and silver could once again back global currencies.