Gold price fall dramatically


The precious metal fell dramatically to a new level to record a decline today by 3.69% to reach the level of 1230.40 USD/ Ounce of gold during today session. Expected movement for the precious metal, especially after the cure of the US economy which appeared strong after the durable goods, new home sales and the consumer confidence. The three new indicators, considered as the green light for the Federal open market committee, to start this year by ending the Assets purchase program, it was the first main reason added load on the gold price.

USA today pushed the global investors to invest in the US stock and made short covering by heading to the US dollar, aiming short covering for their previous losses. Fears in Asia today from the liquidity program of china, made the investor think about a safe investment and a short covering process, their only destiny was the US stock market and the US dollar.

Europe also made the same action today following the foot steps of Asia, after a fall in the Euro area stock affected by the rise of the US dollar. The issue which made investors head to the US market searching for a short covering, after the continuous losses in the Euro market.

The rise of the US dollar and the US stock for sure affected gold price negatively. Gold price decline was predicted, but another analysis for Scotia bank released yesterday, said that, the expected trend for gold price is the down trend and at the bottom of this trend is the level of $1150 USD/ Ounce. For the end of the week trading, gold price could record a slight rise by tomorrow trading due to covering process expected, and the Burgin hunter which could return for the market strongly by any decline in the value of the US dollar.