there are some factor affect gold price rise. We can say that, the rise of gold price was expected especially after the gaining profit in the US stock, which start to take place in the market. It was clear that the investors will head to the Gold market, after the US stock market decline and the slight decline in the US dollar, we watch the rise of gold price by an average of 0.90% to reach the level of $1473.50 USD/Ounce of gold at 13:45 NY Time.
Australia Central bank and the weak fiscal policies
Australia central bank in an unexpected move, lower the value of Australian dollar by 2.75%, due to fears from the reserver Bank of Australia on the AUD to reach its highest level in 30 year. the issue which lead to the increase of buying gold in Australia. Fears from the move of Australian reserver bank is about, the decline of manufacturing rate and the exporter, while for the citizens, in a previous move to decline the AUD for the last year, Australia watch a slow down in the sector of building and the consuming rate. fears pushed the investors to invest in gold. especially after the decline was to the level US$1.0178 from about US$1.0240.
US dollar rule Gold price
As usual the US dollar control the price of gold. we used to see with the decline of the US dollar rise in gold price. Investor see it is the perfect time to buy gold when the US value decrease. the US dollar decline by 0.49, which encourage investors to buy gold. The Dow Jones Industrial Average close over point of 15000, and the Nikkei index at 14250, while it was to close higher. It is the second issue support gold price rise today.
In general gold price rise is a bad indicator for the global market, it reflect the un trust of investors in global bond market and currency. but by the cure of the US economy i think the wave of buying gold will take a short position in the global market.