Tuesday, 19 July 2011
PRICE gold surged past the U.S. $ 1.600 for 1 auns
PRICE gold surged past the U.S. $ 1.600 1 auns yesterday, the highest level in history, due to continued buying investors divert investments to precious metals such as fear debt problems deepened in Europe and the United States (U.S.).
Commodity prices continued to strengthen in morning trade today with the surge to U.S. $ 1,600.10 seauns Market Blooms London after witnessing upward trend since Friday.
Head of Research at Affin Investment Bank, Dr Nazri Khan, said the uncertainty of the resolution of debt problems in Europe and the U.S. caused investors to shift the focus to gold because the precious metal is considered as the safest investment during the crisis. He said the gold price is expected to continue upward trend potential to reach U.S. $ 1.650 seauns in the medium term and U.S. $ 2,000 seauns within two years. "weakening dollar and the euro on concerns debt problems get worse in the world's largest economy and the region of a single currency is causing investors choose to invest in gold, vaulting price, "he told The Star yesterday. He said investors are increasingly concerned with recent developments in the U.S. after President Barack Obama and Republican Party have worked hard over the weekend to reach an agreement to raise the level of the country's debt ceiling. Pete said, concerns investors the possibility of the debt crisis in Europe will spread to Italy and Spain has resulted in the euro traded weak, and it led to increased demand for gold. Yesterday, the Senate coalition intends to prove the level of debt the U.S. can be reduced if they earn a revenue of U.S. $ 1.5 trillion in revenue deduction for a decade. If both sides can not reach agreement by the deadline on August 2, the world's largest economy may face the issue of failure to pay its debts. It is a scenario that portrayed Obama as "economic collapse", thus will give significant impact on the global stage. The crisis in the Euro zone to continue the policy makers failed to obtain a second rescue plan for Greece. The statement added the President of the European Central Bank (ECB) Jean-Claude Trichet that the ECB can not accept the failure of reclamation bonds as collateral was disturbing investors. Previously, there were reports that the gold price is expected to continue its uptrend to reach U.S. $ 2.100 per ounce or U.S. $ 67.5 (RM202.57) segram by 2014, following strong demand of consumers and investors. Last year, the price of gold closed at U.S. $ 1,421.40 seauns, up about 31 percent compared to 2009 driven demand from China and the expectations of speculators that they will profit more from it.