Gold: а review of the market situation

The value of gold has increased significantly, again overcome the level of $ 1200, which was due to a fall in bond yields after the publication of weak US data.

US Department of Labor said: prices of imported goods fell last month, indicating that the weak global economy and the actions of foreign central banks to keep inflation in the United States. According to the data, import prices fell 0.3% in March from February. Prices fell in eight of the last nine months and were lower by 10.5% compared to last year. Economists had expected a 0.4% monthly drop in import prices. Weak import prices have contributed to the long period of low inflation in the United States. They largely reflect weak demand from foreign economies, especially in Europe and Asia, which prevented companies get more value for their products. But the latter also reflects the weakness of efforts to promote global central banks, which effectively weaken their currency against the US dollar. Strengthening of the dollar actually makes foreign goods cheaper in the world market. Export prices in the United States, meanwhile, rose 0.1% in March from February. It was the first increase since July.

Price increases also helps change investor sentiment and expectations of interest rate hikes in the United States. "What is changing quickly, so it is investors' expectations' 'said the expert Wing Fung Financial Group brands viz. According to him, the variability of investor sentiment associated with the approach of June - the expected date of the first interest rate increase in the United States.

Meanwhile, according to analysts GFMS, this year gold could drop to five-year low of $ 1,100 due to a better state of the US economy compared to Europe and developing countries.

As for the situation in the physical market, the demand in Asia this week was low, and the Shanghai Gold Exchange precious metals offered for $ 02.01 per ounce more global standard.

May futures for gold on the COMEX today rose to 1207.30 dollars per ounce.