Gold Price Jumps on Worldwide Worries
Posted by Brian Ford on November 06, 2013
Prices for certified gold and raw bullion were moderately higher Wednesday as variables from different parts of the globe tugged at investors’ heart and purse strings. While some analysts are still convinced that gold is overvalued and could fall to as low as $1250 before the end of the year, news and data from around the world seems to paint a different picture of the gold market’s potential.
Starting in the United States gold gained a boost from a dollar index that fell by about 0.5% today. U.S. institutional investors also helped the gold spot price by covering short positions due to gold’s “little engine that could” mentality that is keeping it above $1300 per ounce. As of 1pm EST the gold spot price was up $4.80 to $1317 and has risen as high as $1323 in the current trading session.
Many believe that the European Central Bank will soon lower interest rates, and the inverse relationship between the ECB’s interest rates and U.S. gold prices could provide further support for gold in the coming weeks. The ECB will meet tomorrow to decide how to handle the euro’s recent drop against the dollar and other currencies.
The Communist Party of China could affect U.S. gold prices this week, as its members meet to discuss major economic reforms which will then be revealed to the world. China has long complained that the U.S. dollar is no longer worthy to hold the title of world reserve currency, and similar rumblings are beginning to be heard from other G20 nations.
U.S. data that is due to be released this week includes the U.S. employment report, the MBA mortgage applications survey, the DOE’s energy stocks report and a U.S. Treasury quarterly report. All of these factors could help or hurt certified gold prices, which can be obtained live by contacting the Certified Gold Exchange toll-free Pricing Desk at 800-300-0715, where all advisers are non-commissioned and trained to help you in a friendly, efficient and professional manner.