Gold settles above $1200.00
Gold settled above $1210.00 in the Asian session, supported by a positive impulse from China's assurance of sustained investment in Europe, giving a brighter perspective of the economic situation in the region.
Gold was heaved upward by the Chinese announcement and rising stock indices. Today, gold has climbed 0.20% so far, while silver has descended 0.01% and is trading around $18.47 per ounce.
The People's Bank of China announced the 'importance of the gold market in the plan to free the Yuan', which in turn had a positive effect on gold.
The Asian MSCI Index had risen 1.4% at 3:20 Tokyo time in morning trading, reaching the highest mark since April 07. They trailed US equities where the Dow Jones closed higher by 2.85% after the European ESTX 50 closed with a gain of 3.52%.
Gold has been advancing from two factors, the first being the fact that the metal is used as a safe haven in harsh economic times, as the debt crisis in Europe is an example of such a case, causing gold to climb to an all time high of $1249.00 on May 04. The second factor is the growing confidence in markets, when gold is considered a basic commodity and is handled as any other investment with high risk and return.
S&P GSCI yesterday closed at 492.23, adding 14.92 points. RJ/CRB raked in 4.89 points and closed at 257.72.
Surging stocks, currency and basic commodities reflect the level of rising confidence in the market. The markets are looking up to China as one of the biggest contributors to the global economic recovery.
Gold futures due July ascended 0.14% and are trading at $1216.100 at 2:59 EST, while silver futures have risen 0.20% to around $18.50 per ounce.