FX.co ★ Gold review for April 21, 2011

The demand of investors for the harbor asset amid concerns over inflation spurred futures on Gold up to new highs, as buyers were focusing on the weakened US dollar and positive dynamics of the stock market.
By the end of COMEX trading April futures on Gold grew by USD 4.90 (0.3%) up to USD 14503.20 per ounce.
The intraday high was near USD 1508.30.
June futures gained USD 4.90 (0.3%) and constituted USD 1503.80 per ounce. During trades June futures reached an intraday high of USD 1509.60 per ounce.
Sharp decline of the US dollar helped futures on Gold close higher than USD 1500 first time for the last three days. Gold is considered to be saving means and an alternative currency; it is more resistant to concerns over paper currencies such as the US dollar. The US dollar dropped to 15-month low of 1.4649 per euro since confidence in this currency has kept decreasing. The US dollar had been dropping until Monday when Standard & Poor's rating agency ruffled the markets with its announcement of lowering the forecast on long-term rating of the US State Bonds.
The prices for Gold grew thanks to the stocks growth caused expansion of inflation-related concerns among the market participants and warmed demand for the harbor asset up. The strong quarter reports on the Company’s profit, including Apple and Morgan Stanley, contributed to further DIJA growth.