After the assumption that declining U.S. growth and chaos in Ukraine is going to have positive impact on the demand for the precious metals as a retreat, the price of gold and silver rose to 16-week high in New York. The measurement by the Federal Reserve Bank of Chicago’s national index shows that the economic movement in the States for the first month of this year was at minus 0.39, compared with analysts’ medium estimate of minus 0.2. this point towards below-trend growth.
It was asserted by Ukraine’s interim government that the country is in requirement of $35 billion of financial assistance to evade default. An arrest warrant has already been issued for fleeing ex-president Viktor Yanukovych. “There is some safe-haven buying because of continued signs of slowing growth in the U.S.,” Tom Power, a senior commodity broker at R.J. O’Brien and Associates in Chicago, said. Gold futures for April delivery rose to 1.1 percent to settle at US $1,338 an ounce on the Comex in New York. It has reached US $1,339.20, which is considered highest for a most-dynamic convention since October 31.
Last year, gold rose had dropped off by the most since 1981, but now a rise of 11 per cent has been noticed since the end of December, and is topping for a second monthly gain. Meanwhile the prices of bullion bounced back in 2014 as the Federal Reserve persisted sluggish spur. “The market is only reacting over U.S. figures. The political situation has been rather tense. There’s some speculative interest in going into gold as a safe haven,” said Bernard Sin, head of currency and metal trading at bullion refiner MKS (Switzerland) SA in Geneva.
From December 2008 to June 2011, bullion soared 70 per cent as the central bank propelled more than US $ two trillion into the financial system. In India as well, gold recovered Rs 31,000 per ten gram level, and it was the aspect of trading on the bullion market in the country during the past week on anxious buying by stockists and retailers for the current wedding season in the middle of a firming global inclination. Silver price also climbed on amplified offtake by industrial units and coin makers.
Traders opined that invigorating buying by providers for the ongoing marriage season largely resulted to mount in gold and silver prices. Indulge in delicate gold jewelry designs at Johareez.com!