Gold futures’ quotations have fallen to the weekly minimum on COMEX while the markets’ stability
decreases the attractiveness of this metal as a secure asset. Following COMEX session gold futures’
quotations with the supply in February have fallen in 26.50 US Dollars or 1.9% to 1360.50 US Dollars for
the troy ounce. January futures have also decreased by 26.50 US Dollars to 1360.0 US Dollars. The gold
lacks certain guidelines while the investors are hesitating between the optimism and concern regarding
the world economy.
Gold is considered to be a shelter-asset as it is not closely allied with the industry in comparison with
other assets like oil, copper and shares. This status stipulates investors’ purchases as they want to insure
against the economic or political instability. Last year gold price reaches the record-breaking maximum
at the time when recovery of the world economy was disputed and situation with the Europe debts was
a matter of concern.
But when the economic starts to recover successfully gold has lost its dynamic.
After having reached intraday maximum 1432.50 US dollars last month gold fell to 1.300, while the
investors started to prefer more risky assets like shares. But they still are rather careful and feel like
buying gold when any news making them feel nervous is released.
Recently the contradiction is observed, on the one hand Euro zone countries - Spain and Portugal faced
serious problems but, on the other hand there is an optimism connected with the progressive recovery
of the world industry and decrease of the unemployment level in the USA.
All these cause uncertain situation for gold.
News from China also resulted negatively on gold. Central Bank of China announced that it decreases
reserve requirements on a half of the percentage pip for banks; it is the last measure taken by the
government to keep inflation in check.
Inflation of the consumer prices in the USA remains restrained, at the same time consumer price index
which doesn’t take into consideration food and energy products’ prices increased in 0.1%.