Gold price recovers trading at USD 1,082 per ounce


(MENAFN- Kuwait News Agency (KUNA)) Gold prices have been recovering, due to a bullish dollar, after falling one percent in latest Asian trades, the lowest since early 2010, when posting USD 1,077 per ounce.

Gold deals for August posted decline, in the American markets, reaching USD 1,085 per ounce, the heaviest drop since March.

Prices of the yellow metal have been under pressure since declining four percent last Monday, amid hefty sell-offs that drastically grew due to investors'' abstention in the Shanghai bourse.

Some analysts relate the gold bearish trend, largely, to robust
employment reports in the US.

Spot price had dropped 1.2 percent to USD 1,077 1,077 per the ingot, the lowest since February 2010, but rebounded last week closing at USD 1,082 per ounce.

The US futures, for the August delivery, dropped 1.3 percent posting USD 1,072 per ounce, the lowest since October 2009 before rebounding to USD 1,082.10.

The gold resumed its bearish trend after the Chinese procurement index for July posted the lowest fall in 15 months, ebbing by 42 points.

China, the world's largest gold producer and the second consumer, produced 110.7 tons in Q1 2015, rising by 14.7 percent, as compared to the same period of time last year. Consumption of the precious metal grew 1.4 percent per year, reaching 326.6 tons for the same period.

The gold prices that had been in the bearish trend for 10 days largely settled last Thursday, when earnings were limited, amid forecast interest hike by the US Federal Bank at the policy meeting in September.

Gold, storing of which is costly, is not viewed as lucrative when interest
rates rise.

However, the prices of the metal continue a bearish trend despite housing sales' rise in the US and the USD hike by 0.42 percent, as well as rates of the major currencies. Experts believe that the gold fall below USD 1,086 signals prospected further falls. Indeed, there are speculations that the price may fall to USD 1,080 per ounce, and probably to USD 1,030 per ounce. (end)


Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.