Gold price affected by the global conditions and circumstances, which happend in the market. It declined the trust of Gold, we watched the lack of global demand on gold. But what happend in gold market?
Global decrease on the Physical gold, Especially India
According to a global report about the physical demand. The report showed that, the number one consumer of gold ( India ), its physical demand on Gold declined sharply, especially in the last 7 days. In which the buying rate of gold declined from $225 million to $41 million. which is the worst rate of buying gold in India for more than three years. Also a global decline on the physical gold, due to the unstable situation of the global economy, which decreased the appetizer of gold buyers. But the turn over in the Indian market is a bad indicator, for the global demand of gold.
Monetary policy of Japan affect Gold price
Monetary policy of Japan, was a surprise for the global market, in which it was expected from Japan, to decrease its monetary policy. But japan decided to surprise the world. In which the Yen gained around 1.98%, for sure it affect buying of gold, this move of the japanese Bank was disappointing for the investors. Expectation about the lack of japan to continue on its curent monetary policy due to the weakness of its gold reserver. Japan did not care about the gold reserver. the issue which decreased the investors feeling of safety, with gold. The japanese move supported the yen and add more pressure on gold, so it was normal to watch the decline of gold price today in the global market.
Comex several problems pushed gold price down
Comex Gold futures is one of the most indicator for gold price. we noticed today the lack of demand on gold in Comex, while it was expected to record a rise, because its low price was expected, to attract small investors. But the wave had changed and comex gold, for August delivery, was down by $11.60 to be traded at $1,374.50 USD/ Ounce of gold, also the expectation by the rise of gold production, for sure affected gold price negatively. I think, most of investors will be waiting for gold price stability, to return back for the market.
Unstable situations in Europe decreased gold demand
The increase of unstable situation in Europe, had a negative affect on gold demand in Europe. Bonds yields are rising in Spain, Italy, Greece and even Germany the most stable economy in Europe. A survey taked place in Europe showed that people in most of the European countries, said that they are unsatisfied by their countries economic situation. The study showed, only three percent of the people in Europe are satisfied by the economic situation in Europe, for sure this study indicate that. European citizens have not enough cash flow to buy gold. Plus the problem in Turkey added more stress on the Euro zone.
USA Improvement affect gold price
The Standard & Poors credit rating raised, for the USA credit rating from negative to stable condition. Investors took it as a sign of USA economy recovering from the late recession and an indicator of ending the easing program sooner. the issue which made a push for USA stock and an improvement in the US. Dollar situation, which for sure caused a decline in Gold price.