Gold price affect for the second day by Cyprus crisis in which investors and depositors owner in Cyprus banks withdraw most of their dept funds to avoid paying taxes, the issue which lead to the decline of the Euro today infront off the US dollar and the Yen too, directly most of investors went to buy gold as a safe heaven so the increase of gold price was some thing normal.
Euro declined by 3% today which is the biggest lose during this year, Gold price we can say it starts to cure supported by the weakness of the Euro today.
the second direct reason was increasing the rate of consuming gold in China without any reason clear, but china in general watched an increase in consuming rate.
Gold price is expected to rise if there is not any solution for Cyprus crisis, especially there is a lot of Russian investors had money in the banks of Cyprus, the crisis is going to increase if there is any more withdrawing actions happend, also it will lead to increase of the gold price by 2% in the near future.
Gold price is affecting by currency market, currency value of dollar or Euro decrease we will watch a rise in Gold price, a small tip for investors in gold watch the Euro market for the next few days carefully, to avoid any profit gaining process which is expected too, which will lead to the decline of gold price.