FX & CFD trading involves significant risk
Today the gold price declined again, reaching minimum values at the same time the previous day, which at the same time be a four-month low, showing with the largest weekly decline for the week of June this year. It is learned that this pattern was associated with the rise of the U.S. dollar, as well as "tipikom" in the negotiations related to the "fiscal cliff." Recall that yesterday's sharp drop was due to the fact that the Speaker of the House John Boehner was not able to join their Republican lawmakers in an attempt to extract concessions from President Barack Obama's budget issues. Note that the new plan is more uncertainty in the negotiations on izbezhenayu tax increases and spending cuts that could push the U.S. economy into recession in 2013. In theory, such a result could raise the appeal of gold as a safe-haven.
However, analysts say this uncertainty, however, discouraged some investors to put their money into gold.
Also today, it was reported that Iraq has made the first major step for the year, which was reflected in an increase in foreign exchange reserves in recent months, joining with the central banks of emerging market economies such as Brazil and Russia to diversify its foreign reserves.
But, despite this decline in early trading, the price of gold eventually grew, restoring more than half the losses incurred yesterday. Note also that prices continue to rise, even in spite of the fact that the dollar is strengthening.
February futures price of gold on the COMEX fell rose to 1656.70 dollars per ounce.
All posted material is a marketing communication solely for informational purposes and reliance on this may lead to loss. Past performance is not a reliable indicator of future results. Please read our full disclaimer.