Gold and Silver Price Update-Gold Advances Due to A Series of Weak Economic News

Gold bullion registered a slight increase, signaling towards a possible advancement in prices for the first time in three weeks. Gold futures rose by a slight 0.07 percent to USD $ 1509.90 an ounce. Silver futures also increased by 0.07 percent to USD $ 35.11 an ounce.

Gold’s attractiveness as a safe-haven increased its demand due to a number of reasons. Fitch’s downgrading of Greece’s credit rating has increased speculation that even if the European Union considers a voluntary extension of its bond maturities, the country would have had technically defaulted. Also, Standard & Poor has downgraded Italy’s credit rating from “stable”

to “negative”. Furthermore, China is under the grips of higher-than-anticipated inflation. The consumer price index rose by 5.3 percent in April from a year earlier. The targeted inflation level is of 4 percent.

All of these factors have increased the demand of gold as a viable investment option, fueling its price.