Go Finance Reporting in NEW YORK - Gold prices rose nearly a percent due to declining value of U.S. dollar (U.S.). This is the biggest reinforcement for safe-haven commodities in the last three weeks.
It is also due to economic uncertainty the European Union, including Germany and France step which intends to save Greece from the default by urging the Prime Minister of Greece to replace the Minister of Finance because the savings plan are not considered popular.
The increase in gold prices is also due to U.S. economic activity is interpreted to increase even backwards. Coupled with the poor U.S. consumer sentiment is expected to weaken in June.
"We see risks in the equity markets back up so the dollar down. Obviously, gold is reacting very well," said the Director of Metals Trading Vision Financial Markets David Meger, as quoted by Reuters on Saturday (06/18/2011).
The price of gold in the spot market rose 0.8 percent to USD1.540, 99 per ounce. This is the strongest rise in a single day since May 27 when it jumped 1.1 percent. (GoFinance)
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