The price of gold rose more than 1% during the day Friday, to follow the conduct of the sharp rise of the euro, after European leaders agreed to allow the banks to re-recurrence of bank profits is to increase government debt, help to calm fears that the debt crisis in the region.
But the heavy losses during harvest of the last three months indicates that gold is still on the road to the worst levels of the quarter since 2004, where there is an increase in the global economic downturn From Europe to China, prompting investors to resort to the dollar as a currency safe.
The actual price of gold rose by 1% to up to $ 1566.84 an ounce until 0415 GMT, after hitting a session high $ 1569.20 approx. U.S. gold rose by 1.1% to $ 1567.60 level.
He jumped into the price of gold when the dollar fell against the euro, following the agreement of European leaders to establish a body to oversee and control of banks in the euro area, thus allowing them to re-direct funding by cash bailout funds, avoiding adding debt to the government. The form of this decision a great relief to investors in the markets, commodities or stocks, and those who were not have great expectations from the summit of EU leaders in the current take concrete solutions to find a way out of the debt crisis in the euro area, which entered its third year.
An economist in the market from Mizuho Corporate “This is not a solution actually, but what will the failure of this Summit for the European market is to get rid of extreme pessimism that perhaps a drive positive for the markets. This also indicates at least, that he can avoid an immediate crisis in the region resulting from the banking sector. ”
Has helped increase last Friday, erasing losses of gold for the month of June, and now gold in the road to publication of the first gain in five months. But in the second quarter, gold bullion are still low by more than 6 percent, a loss on the most level since 2004.
Gold also fell by more than 12% of the summit at approximately $ 1.790 for the year 2012, and 18% of its highest-ever level of above $ 1.920, which was reached in September 2011.