Gold’s contract price touched a new highest record in history as the latest escalation of the debt crisis that Europe is boosting demand for gold as an investment hedging instruments.
In the New York Commodity Exchange, the contract price of gold for August delivery increase 0.8% to US$ 1,562.30 per ounce at 1:39 pm New York time. The previous record was US$ 1557.10 on May 2, when the price on the daily trading reached highest record , US$ 1577.40 per ounce.
The exchange rate of euro against the US dollar fell to the lowest level in four months, after European Union finance minister failed to tame the fiscal blow that hit the area, looking for ways to reduce the debt burden of Greece.
On the other hand, from the Federal Reserve’s meeting last month, appears disapproval to provide additional monetary stimulus, even if the prediction of economic growth remains weak. Yields on bonds go up in Italy and Spain, and European stocks posted the highest decline since March.
This situation helped push the gold prices in both euro and pound to a new record. After a new record for August, the gold price immediately increase to US$ 1,573.90 in electronic trading board.
“With currency volatility and the risk of spreading the risk of debt to the rest of Europe, investors are themselves drawn to the protective value of assets that can be counted like gold,” said Adam Klopfenstein, senior analyst at Lind-Waldock, a broker in Chicago.
The contract price of gold rose up successively in six trading sessions, and has climbed nearly 10% this year. The increase was started since 2001. Report Edel Tully, analyst at UBS AG that based in London, yesterday revealed that the precious metal will be traded soon above $ 1,600 an ounce.
