Gold price extended free fall

Noam Stiekema

The gold price extended free fall on Wednesday, hovering around its lowest level since April 2010, as demand for the yellow metal is shrinking under the pressure of an growing USD. At the beginning of the European session the December gold futures traded with a fall of 1.54% to 1,149.70 USD per ounce. The price […]

Gold price

Gold priceThe gold price extended free fall on Wednesday, hovering around its lowest level since April 2010, as demand for the yellow metal is shrinking under the pressure of an growing USD. At the beginning of the European session the December gold futures traded with a fall of 1.54% to 1,149.70 USD per ounce. The price of silver contracts is also down 2.66%t to 15.528 USD per ounce.

The USD index ICE, which measures the relative strength of the USD against six major rivals currencies rose by 0.27% to 87.40 points. Meanwhile, assets of the largest in the world, backed by the gold exchange traded fund SPDR Gold Trust fell to 738.82 tons on Tuesday, which is the lowest level since September 2008.

The investor attitudes were affected in the last hours against the foreign trade data from the US and the prospects for global growth. The US trade deficit went up 4-month high. In September unexpected shortages expand to 43 billion USD compared to the expected 40.2 billion USD and the revised deficit of 40 billion USD in August.

In Europe, the European Commission did significantly lowered their expectations for the European economies, adding another negative signal to concerns about the economic recovery in the region. Looking ahead, the market is waiting for the data to Automatic Data Processing for new jobs in USA. On Friday you expect and government statistics on the labor market, which will be closely monitored by the Federal Reserve. Central bankers still considering when to start gradually rising interest rates.

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