Gold prices have been inclining since beginning of 2010!
The precious metal extended its gains from yesterday, while continuing the most inclines in two month as the dollar continued to depreciate in the markets versus a basket of major currencies; therefore increasing demand on gold and other metals as an alternative investment.
Monday, gold rose $24.50 or 2.23% to close at $1121.12 an ounce as the dollar lost strength six major currencies, which are measured by the Dollar Index, which we see continue to decline today to currently trade at 77.21 while recording a high of 77.51 and a low of 77.13.
The dollar in markets is decliningdue tooptimism filling up markets that an economic recovery will begin to take place this year; therefore increasing risk appetite, turning investors more towards the stock markets and higher yielding assets. As higher-yielding assets climb, it also weighs on the dollar's strength causing it to plummet.
Among other precious metals; platinum is traded at $1513.40; palladium at $421.50; silver at $17.53; while, copper is at $340.28. Turning to commodity futures we see yesterday, S&P GSCI closed at 537.94 points recording a high of 539.15 points and a low of 533.53 points, while RJ/CRB Commodity closed at 289.34 points recording a high of 289.55 points and a low of 283.38.
Gold was set in London on Monday at $1121.50 per ounce inclining from $1113.00 per ounce during the AM fixing.
Furthermore, stocks in Asia climbed pushing the MSCI Asia Pacific Index to a 16-month high, as a result of the U.S. manufacturing expanding at the quickest rate in more than three years while surpassing expectations. This meant that the economy behind the world downfall is showing more signs of recovery, therefore supporting the rise in global stock markets.
Turning to oil, we see that prices are rising led from the U.S. stock markets rising heavily, therefore increasing investors confidence which led oil prices to continue its gains for the fourth week, as rising confidence means more demand on oil, which attracts investors to oil markets as they seek potential in profits.
Currently, spot gold is traded at $1127.40 an ounce recording a high of $1127.70 an ounce and a low of $1119.30 an ounce.