Gold prices jumped to their highest level in Asian dealings on Thursday after the euro zone leaders agreed on a plan to contain the debt crisis in their region, which boosted sentiment in the financial markets.
And received the precious metal in support of a dip in the dollar, and stepped up the price of gold for immediate sale to 1728.11 dollars per ounce, its highest level in the month before falling to 1722.49 dollars by the time 0345 GMT, headed for a record fifth consecutive session of gains.
And registered futures U.S. Gold also has the highest level in at 70.1729 per ounce before easing to 1724.80 dollars.
The Gerhard Schubert, head of precious metals in the Emirates NBD, the demand for gold will remain strong in light of the current sovereign debt crisis plaguing Europe, and slowing the pace of recovery in the United States, and the uncertainty surrounding the Chinese economy.
And has shown that macroeconomic factors and the behavior of consumers is the reason behind the strong demand for gold, which is no longer limited to the importance of being just a safe haven for investors.
“We are growing at the present time the importance of gold as an asset and a means of portfolio diversification, as a result of the instability of both the political and social development. There is no doubt that the uncertainty about the currency mandatory in all parts of the world is an additional factor contributing to reinforce the status of gold as an alternative to cash.” He said: “Given the increase in disposable income in emerging markets, the gold becomes attractive investment option central banks and sovereign wealth funds, pension funds and individual investors.
He ruled Schubert likelihood of a bubble of gold, saying: “are not confined to gold investment in speculation, but is invested as a category of assets across many areas of business. For example, became the central banks to make purchases net movement due to political decisions more than as they relate to the price. ”
He pointed out that gold prices continued to rise steadily during the past two decades compared with Treasury bonds. And he continued, “for as long as gold was a safe haven in times of inflation and political unrest and economic crisis, which is why our view is still positive about the precious metal under the current circumstances.”
He called for the need to pursue investors the course of events during the second half of 2012, and to take into account the results of U.S. presidential elections to be held next year, in addition to understanding how they will solve the crisis of the European debt; it is likely these factors affect the size of the Gold demand by customers and investors. In the short term, are likely to be Schubert demand is greater than the volume of supply.