Finally carried the gold trade markets is good news after a long period of bad news on prices , precious metal prices continue to rise to near their highest levels during the last three weeks , as prices rose an ounce of gold in the global markets of 1280 to U.S. $ 1315 per ounce.
Investors seek now to invest in gold due to the escalation of the conflict in Ukraine , as the yellow metal retains value better than other assets including the U.S. dollar , as the dollar fell to its lowest level against the euro in the past two months has led many of the top international investors to go for gold .
Said Dirk died, Deputy Executive Director of the research unit of the Commonwealth of bullion markets British for ” economic crisis the Ukrainian is currently playing an important role in increasing international demand for gold , but the most important in the future is the role to be played by international hedge funds , they are now working both for display or global demand , but if you have changed the financial policies of America and the Council lifted the U.S. Federal Reserve , ” the U.S. central bank ” of bank interest rates , which in practice is less than 1 per cent currently , this will raise the cost of retaining the hedge fund gold has , and will not be in front of her , but put large amounts of gold stocks in the market , which will lead to the decline in prices even if the crisis persisted Ukrainian .
However, the global gold market is happy the current increases in prices , and all of them , regardless of whether the sales are made in China or India or Dubai or U.S. markets , slight increases , and does not reflect the huge investments made in this area .
Suggests Roy Cullen a gold traders in London , that the number of buyers in the market is now the largest of the past and the demand is higher , but they all are buying small quantities and limited , the problem is not in the frequency of price , the problem is in the misty surrounding the future of buying and selling , the future is full of vague , and specific factors linked to increased demand in large part by political factors in Ukraine , and this crisis does not know when it can be solved , and the result is that we went as traders can not calculate our future to meet the needs of the market .
However, the current scene of prices and volatility between high and low , does not prevent some people from continuing optimism about the future of the yellow metal in the medium term , estimates of some officials of the World Gold Council indicate the possibility to restore market balance in an upward direction during the two or three years , so the price of an ounce to between 3000-3500 dollars.
He adds Christopher Lakas from the World Gold Council ‘s ” economic ” , that the drop in gold prices last year caused panic in the markets, the hedge fund offering 700 tons of gold reserves have in international markets , to make matters worse , but now the markets digested those tons of gold and demand began to increase.
And despite the fact that hedge funds still retain huge quantities of the yellow metal , but it is doubtful that posed by large amounts of them for sale, then this will affect the financial position and weight .
Although the case of the ups and downs current gold prices since the beginning of the year , but the general trend indicates an increase by 17 per cent in the value of the yellow metal , and count some of the inflation rate currently in the United States as a factor attracting positive in favor of gold , and is expected to continue this factor impact on the markets during the current year .
With the confirmation of the top gold producers in the world , such as South Africa , China and Australia for international investors to continue to supply the market in sufficient quantities of gold bullion in the coming months , this means that the supply will continue to maintain the average current during the current year , and that the price changes will depend primarily on changes in global demand .