Global circumstance had an affect over gold price, but where is gold price going?,, frankly we can say there is not any expected trend for gold price, but according to the global factor we face now a day. We could found that Cyprus facing a contraction, while the Greece economy starts to cure, and the US bonds which go up and down we do not know where it is go? or what trend is going to take?, plus one of the most Important factor the US dollar, and for sure Asia buying rate.
Gold price considered as an important factor for the global economy, in which it assure the strength or the weakness of the global economy.
Greece affect on gold price
Greece, a country in the Euro area, a financial criss starts to hit its peaceful shore, the country of history the people of arts, starts their revolution against austerity plan of the government, the plan which had announcement in 2010 aroused resentment of the people. Greece was the direct reason in the rise of gold price, because most of investors head to buy gold as the safe heaven for them, in case Cyprus knocked out from the Euro area.
Fears grow in the Euro area by the beginning of the financial crisis demonstrate over the Euro area. But Greece was the first country increase fears about the future of the Euro zone. We can say Greece starts to cure, Greek prime minister Antonis Samaras do a lot of efforts and negations with the IMF and the Euro area about the debt crise and its mangement.
Catastrophe of the Euro Area
The Euro starts to shake after the decrease of the credit rating of Spain, Italy and france. The issue which lead to the decrease of the Euro Currency and the rise of the US.dollar. Once the US.dollar increase we watch a decline in the Gold price, after Gold price declined the reserver value of the Euro area from Gold for sure decreased. The decline of the Gold value in the Euro lead to a decrease in the value of Euro currency, we watch a catastrophe in the Euro area because of Gold price. Gold price now a day considered as one of the most important indicator for the future of economy in Europe.
Cyprus rumours affect on gold price
All of us had listend about the financial crise hit Cyprus, and the Euro zone condition about the deposit taxes, after this we watched the sharpest decline in Gold price, the rumours was ” Cyprus is going to sell 400 Ton of gold in the market” the idea which lead to the decrease of gold price sharply, and the rise of the US bond. During the rumours of cyprus and fear from the Euro bond, lead to the increase of buying rate of the US bond.
Asia buying rate of physical gold
Asia had a high interesting rate in buying physical gold, especially India, china, UAE, kuwait and Saudi arabia. They are the leading countries in buying gold in Asia. Golf countries had a high rate of purchasing goods not only gold, India is a country gold related to most of occasion in it, so by the high rate of buying gold in Asia, some time it lead to the decline of gold price globally.
Political factors affect gold price
Political conditions affect gold price, when USA invade Iraq we watch a rise in gold price due fears from the slow down of the global economy, fluctuate in political condition lead to a rise of gold price, because it consider as the safe heaven in time of wars.