Gold Stays a High in 4 Weeks
June 1st, 2011 - Posted in Mining Stocks
Gold was able to retain its highest for four weeks.
Gold was able to maintain its highest for successive four weeks in Tuesday, but backed out after Germany gave the assurance that it can help Greece to be back on track. According to reuters.com, this pushed investors to go for additional risk while seeking for assets.
The Wall Street Journal confirmed that Germany has decided to drop its demands to give chance for Greece with regards to rescheduling the country’s bonds that will permit new package, with intention of getting loans and aid that will help Athens settle its debt.
The triumph of euro against the US dollars did not affect much to increase the demand for gold that is going opposite the the route of the US dollars. This also left the demand for gold almost unchanged.
Spot gold reached its highest of $1,540.36 since May 4, before it went back to $1,538.10 an ounce by 1430 GMT on the same day. Analysts are predicting that gold will increase to 0.1 percent at $1,538.10 in June.
According to James Steel, who is an HSBC analyst released a statement saying, “At least to some degree, the sovereign debt issues with Greece and the other peripheral EU countries has been pretty well documented, so it’s not necessarily a surprise for the market.”
Gold is said to be doing well in the month of May gaining 60 dollars higher compared to the recent data.
Though the bullion went down to 1.6 percent in the month of May, going fast into the a high of $1,575 early on the month, and it has been threatened by the situation in Greece, gold managed to retain its gains.
“Gold has been rallying since the middle of May and is actually some sixty-odd dollars higher from the recent low, so it hasn’t done too badly,” James Steel added.
Silver went down to 20 percent this month, while platinum slumped to almost 2.5 percent, and palladium went down to almost 2 percent.
