Gold is the biggest winner after growing concern about the fate of the European Union

gold core

The Dow Jones index fell during the week, weighed down by several factors such as high non-farm payroll less than expected, and the ambiguity of the implications of bankruptcy, an eighth-largest bankruptcy case in U.S. history.

But the most important factor is the control of investors of what is happening in Europe with the top twenty countries in France.

The report of the company Kavio brokerage that at the same time, the lower the unemployment rate to 9%, the lowest level in six months in addition to modify the outlook for jobs towards more positive, these two factors Aahran to increase the power of the U.S. labor market.

But that will not lead to a breakthrough in the economic situation of the continuation of positive news with the continuing unstable situation in Europe.

After having reached the leaders of Europe to deal with European banks on the debt of Greece, were surprised by the world at the invitation of Prime Minister George Papandreou to the referendum for the approval of the plan after he lost more of the votes supporting it in Parliament.

With the decline Papandreou for the administration of the referendum under European pressure, the fate of the rescue plan are still vague because of the growing disaffected by the parliamentary vote, so the issue has become out of Greece, the euro currency issue seriously than ever before.

At the same time, investors shed more light on Italy, which agreed to monitor the International Monetary Fund and the European Union for economic reform plan that long-postponed. The euro fell against the dollar significantly and reached 1.3608 dollars before to regain some of its strength and closed at $1.3790  unconscious so 372 points during the week.

And contributed to the strength of the dollar since the beginning of the week intervention of the Japanese central bank to reduce the value of the yen against the dollar after it closed below the 76 yen per dollar in the previous week, which led to the pumping of Japan for more than the yen, raising the dollar to the level of 79.52 yen before closing at 78.22 yen, gaining 3.2% this week.

With the increasing concern about the fate of the European Union, the gold is the big winner of this situation.

Despite the reduction of the European Central Bank interest rate from 1.5 to 1.25% grounds that the slow growth and the possibility of entering the euro zone in recession again, which gave greater strength to the dollar, the price of gold rose to earn $ 10 in addition to gains of the previous week, because the factor of concern to overcome the factor strength of the dollar.