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Gold

Gold prices moved higher in line with the weakening U.S. dollar (U.S.) because of the euro, which rallied due to expectations of the Greek parliament will pass the savings plan to avoid default. Tuesday (06/28/2011), price of gold in the spot market rose 0.3 percent to USD1.500, 25 per ounce, the lowest position in five weeks at USD1.490, 30 in the previous session. U.S. Gold GCcv1 also rose 0.3 percent to $ 1, 501.10.

Value of U.S. dollar weakened as a result of the euro extended gains from the previous session due to expectations that the Greek parliament will approve the necessary fiscal austerity package for the country to get emergency assistance from the IMF and the European Union. Greek Parliament started to discuss the issue of tightening the budget on Monday to debate an unpopular austerity plan, and expected a decision on Wednesday.

On the other hand, the U.S. economy continues to show signs of slowing, as consumer spending failed to rise in May. U.S. stock markets rose after weakening in three consecutive days. While U.S. crude oil prices rose to above USD91 per barrel on Tuesday as the euro rallied against the dollar.

A new record price of gold have just re-reach. Anxiety will boost demand for the debt crisis of gold as an investment alternative. In trading on the New York Mercantile Exchange on Tuesday (04/05/2011) local time, the contract price of gold for June delivery rose 19.50 dollars or 1.4 percent, to 1452.50 U.S. dollars per troy ounce. This is the highest closing price in history. While the contract price of gold for current delivery rose 1.6 percent to a record high in the position of 1457.45 U.S. dollars.

The level of insurance for the debt financing Portugal surged to a record high in history. In addition, the conflict in Libya and Japan’s nuclear crisis is also some sentiment that increases demand for gold. If calculated, the price of gold has jumped to 28 percent as much in the last year.

“There are shocks in the Middle East, uncertainty in Japan and there is a possibility of default (default) European debt. The high demand for gold and silver performed as hedges of these factors before,” said Adam Klopfenstein, senior strategist at Lind-Waldock.

Gold. This precious metal has long since become an investment tool before the knowledge of deposit, stocks, or mutual funds. Various types of gold investments, ranging from relatively simple, namely in the form of gold jewelry, bullion, to the dinar.

Then in this modern era, whether investing in gold will still be profitable? Gold has the protection of assets because of the consistency of its purchasing power. When gold prices fell, prices of other commodities, like oil, come down. So if gold prices go down, we do not go down because the property can still buy as much as when gold prices fell. In other words, gold is zero inflation.

Investing in gold is also relatively safe. When you save money in the bank, the material will gradually eroded by administrative costs, 20 percent tax rate, low interest rates and limited warranty. On the other investment institutions have broker fees, administration, taxes, and others. In gold, no need to worry about it all. Gold is not touched by the banking system so that freed from the threat of financial crisis.

In addition, easy to buy gold anytime and anywhere. Similarly, when selling it. The process of buying and selling easier, faster, and its value following the international market prices continued to strengthen. As for investments, such as property, deposits, vehicles, and works of art it took more than a day to melt it. Gold is also an effective means of saving money. There is no cost depreciation in the value of gold, and even continued to rise. Short-term value of gold does fluctuate.

The gold price is predicted to reach USD1.300 per ounce this year as investors sought refuge from the gloomy economy, the weak value of the currency and inflation, according to GFMS Ltd..

“Looks like there will be a surge in investment demand at the end of this year, triggering price [of gold] to the level of USD1.300, maybe more. The prices will soar,” said CEO Paul Walker, as quoted from Bloomberg, Sunday (08/29/2010 ).

Gold demand rose 36 percent in the second quarter is suspected because of soaring gold purchases by investors as a patron that encourages the achievement of record prices amid debt crisis of Europe, said the World Gold Council’s August 25. Investors bought 291.3 tons of metal as a mutual fund.

Goldman Sachs Group Inc. earlier this month predicted prices may reach USD1.300 in six months. Deutsche Bank AG on June 3 predict metal prices rose to USD1.700 because the drop in currency values.

Gold for immediate delivery rose 0.3 percent to USD1.244, 30 in London yesterday, the highest since June 30. Metals traded USD1.235, 25 at 8:49 Tokyo time. World gold demand surged 1050.3 tons in the second quarter from 769.6 tons last year.

Just to remind, after increasing for two consecutive days, gold prices back down. This is due to unemployment data which was considered negative.

“U.S. jobless claims fell more than expected, pushing demand for the precious metal as a safe-haven investment,” he wrote in his research Valbury Securities. The spot gold traded at USD1.238 per-ounce level on Thursday morning local time, from USD1.239 position a day earlier.

While the USD fell against both the euro and yen on Thursday as Federal Chairman Ben Bernanke’s speech. In New York trading, the USD weakened 0.2 percent to 84.44 yen level, while the euro rose 0.5 percent to a position of USD1, 2716. Yen also rose against the dollar also follow-up on last Tuesday