Gold reaches highest altitudes this year
Bullish forces have forced gold to climb up. Falling stock indices on Friday pushed investors into alternative investments, with gold being one, while the ongoing Greek crisis, that is feared to hold its effect for the next decade despite aid plans, has encouraged investors to use gold as a safe haven in this time of economic uncertainty in financial markets.
Gold prices are rising to record heights against the euro, pound and Swiss franc. Gold is trading at 890.00 euros, while against the pound the yellow metal is trading at 770.00 per ounce and at 1270.00 francs.
Friday's New York closing was at 1179.30, up by 1.04%, after reaching this year's peak of 1183.00. The heat cooled off today, as gold is trading at 1178.00, down from Friday's closing.
Silver and platinum had followed gold's path on Friday. Silver closed with a 1.14% gain at $18.66, while platinum rose by 0.52% to close at 1739.00.
Stock markets had retreated on Friday, where Dow Jones fell by 1.42%, while the S&P 500 and NASDAQ were no exception. Commodity indices were unaffected by their stock peers, as the S&P GSCI closed at 549.94 after rising 5.52 points, whereas gold climbed over the $86.00 mark.
Stock indices were mainly pressured down by profit taking, which was incited by the rise of indices over the prior period to vital resistance areas. Investors were tempted to take profits by the veil of uncertainty hanging over the Greek crisis. On the other hand, the rise in commodity indices was sparked by the gain gold has been making and the assurance of the American economy's recovery.
The dollar index climbed to 82.00 from 81.62, influenced by the new bullish wave. This ought to put pressure on metals, as we expect a downward correction from the shiny commodities. Though downward corrections are projected, the main trend remains upward, with more bullish behavior expected over the mid-term, especially from gold.