Gold Targets The Key $1200 Level
After reaching the price of 1150 USD, gold has shown signs of life, growing to 1190 USD last week, the highest result in two weeks. Before this hike, gold was steady on 1150 USD, and now it aims to reach the price of 1200 USD.
There were even indications that gold could go down from the $1150 supporting level, going under $1130, a record low level in several years. In February, gold held the crucial $1200 level on various occasions. Gold dropped regularly for month, before securing a steady support on $1200 key level. The five month peak of value was reached at $1308, before it plummeted back down to $1150, annulling the great work gold has done in the beginning of the year.
In the second half of 2014, the price of gold fluctuated from $1130 in October, to $1290 in August. On Monday, gold was somewhat higher, due to a weaker US dollar and the Federal Reserve caution regarding the possibility of a hike in United States interest rates, which created low investor interest. Aprils delivery of United States gold features settled up $3.1, with the price of $1.187.7 per ounce. Spot gold went up 0.5% and it was at $1.188 per ounce, the highest price since March 6. The caution about the agreement between Greece and its creditors, which could secure funds before the meeting of Greek Prime Minister and Angela Merkel, influence the fall of European shares. Gold is considered to be a risk insurance, especially in times of economic and financial turbulence, when equities can’t be relied on.
United States dollar went down 0.8% compared to most leading currencies. USD was pressurized by the stance of Federal Reserve, regarding the recovery of United States economy. Expectations for U.S. interest rates increase changed, since a number of Wall Street leading banks now not expecting the increase until at least September.