Crude Oil Insights Crude Price Outlook, Uncategorized Gold Price Update.Decrease in Prices Due to Appreciation of Greenback and Increased Consumer Confidence

Gold Price Update.Decrease in Prices Due to Appreciation of Greenback and Increased Consumer Confidence

Gold prices fell on Monday, the 28th of March 2011. Gold future for April delivery fell by 0.4 percent at USD $ 1419.90 per ounce. Even though gold still remains attractive for investors to hedge their investments against the continuing unrest in the Middle East and the nuclear crisis in Japan, it did not gain more in its prices as investors have already exhausted frantic buying of gold as a safe-haven.

The strengthening of the US dollar against the Japanese Yen, the British Pound and the Euro has increased investors’ confidence, which has also contributed to a decrease in the buying of gold. Moreover, US consumer confidence for March is expected to be released today, with analysts predicting a reading of 65. This sudden upsurge in consumer confidence has also put less pressure of gold, thereby preventing its prices from escalating further.

 

Author: Jawwad