We had watched at Yesterday session a decline in Gold price, but we used to find the decline in gold price because of the U.S. Dollar rise and the U.S stock market. For the first time, for more than a year we find a fluctuate in gold price because of the strength of the Euro area. But what happend exactly cause the decline of gold price?
After the Euro area stock market watch a slightly technical rebound, we starts to watch a decline in Gold price. The FTSEurofirst 300 index of shares of the major European companies rise by 0.3% to 1233.38 points, while the levels of the Euro Stoxx 50 index belongs to the leading shares in the euro zone rise by 0.5% to 2790.65 points, we watch a head from the European investors toward the Euro stocks, and geting away from gold price.
The euro rose yesterday after the results of the survey conducted by the German Ifo business sentiment, and it came better than expected, indicating that Europe’s biggest economy recovers and reduce the chances of further monetary easing in the euro zone, so it was a direct reason for the slight decline in Gold price. But for sure the U.S. Dollar had a role too.
U.S. Dollar and the decline of gold price
The U.S. Dollar for the first time through the last year did not had a strong affect on Gold price. The U.S. Dollar passed by a fluctuate in the last three days especially, after “Bernanke” Speech, in which the U.S. Dollar was in the red area for the last three days. But the U.S. Dollar pared losses against the yen, this issue did not make anything noticeable toward gold price. We can say that U.S. Dollar did not control Gold price Yesterday.
Japan faced Gold price rise
Nikkei index of Japanese stocks record a rise yesterday after the sharp decline by 7.30%. Investors support Nikkei index yesterday, but gold price did not found any support from Japanese market. I think Japan demand on physical gold will rise in the near future but their demand will not made any change on gold price.