Affecting factors the price of gold on october 2011

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Affecting factors the price of gold on october 2011
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Affectin factors the price of gold On october 2011 , After a steady climb to a record high of $1920.30 per ounce in September, gold prices plummeted up to 20% from their 2 year high.

However, as the day wears on, gold is gearing up for its third consecutive rise in as many days. Influencing factors on gold’s rising prices are outlined in-depth on both Forbes’ website, as well as Reuters, but the main factors affecting the price of gold today can be boiled down to three things.

European Union Economics

The leaders of the EU are scheduled to meet tomorrow to attempt to resolve the spreading debt crisis within the euro zone. Plans tentatively include increasing the euro zone’s bail out fund to over 1 trillion euros ($1.39 billion) as well as recapitalizing major European banks and lightening Greece’s debt load through write-offs. The markets are skittish to give their total confidence to a resolution, and this has gold on the rise.

As ANZ’s head of metal sales Peter Hillyard told Reuters, “I believe the gold price will be higher based on what I think will be a failure to resolve, in a satisfactory way, all of the euro zone problems and so on…I’d rather be long of gold than short of it.”.... READ MORE