Gold fell more than 1% yesterday to its lowest level since mid-January on the back of the high dollar and the decline in consumer demand and weak investor appetite for the precious metal. And went down the price of gold in Spot 1.2% to 1627.68 dollars an ounce, its lowest level since January 13, before recovering to 1637.21 dollars an ounce. And U.S. futures fell for gold of $ 18.70 to 1631.50 dollars an ounce. Followed the example of silver and gold to fall, but it recorded a significant decline.
Gold prices have fallen 2% since the beginning of the month after that squandered the latest statement of the Council of the U.S. Federal Reserve in hopes of further purchases of assets, data showed recently that the U.S. economic recovery on track. But some economists say: The world economy is still vulnerable this year as there are prospects of renewed debt crisis of the euro zone recovery is still at an early stage in the U.S., while China is facing a slowdown in growth. Usually benefit gold as a safe investment of economic uncertainty factors, but a global crisis has driven down with the other financial assets.
Failed to significantly
At the former gold closed little changed after it failed to maintain its gains with the initial decline as investors buy the precious metal. The yellow metal hit a slowdown in consumer demand and low gold holdings in exchange-traded funds.
And landed in the largest gold holdings of these funds in the world, including more than 100 thousand ounces in the wake of displacement of funds from major funds registered the largest decline for one day in three months, with some investors turning to gold for other investments.
Decline in the euro
Decline in the euro remains vulnerable to further falls after weak data raised fears of the euro area of renewed recession in the region, while disappointing data prompted the Australian dollar high yield lower. The euro fell to its lowest level against the dollar in the meeting and the Yen.Fell against the dollar to 1.3133 dollars.
The European currency has reduced its losses after that to reach low of $ 1.3160 0.4%. Against the yen, the euro was down 0.9% to 109.15 yen, after falling to its lowest level in the week at 108.79 yen on trading platform. Me. Feed for electronic trading after it has some long-term investors sell the euro after the PMI data.
Said Niels Christensen, currency expert at Nordea in Copenhagen: when we see figures like this, that the euro area growth prospects will certainly questionable and points to a mild recession. The dollar came under pressure against the yen after data showed that Japan recorded a trade surplus of a sudden in February compared with a record deficit in January.
But the dollar found support as a result of purchases by Japanese importers and operations to cover the city centers by exporters, said a trader at a large Japanese bank. The dollar fell 0.1 percent to 83.33 yen. And reached its lowest level in the session at 83.14 yen because of trade data. And influenced the negative data on the growth-linked currencies, particularly the Australian dollar due to link Australia’s trade relations with China a close. The Australian dollar fell against the dollar about 1% to U.S. $ 1.0356, its lowest level in two months.