Precarious situation of the global economy has rallied investors behind the gold with the precious metal adding as much as $7.60 to a final price of $1,355.30 an ounce at the Comex division of the New York Mercantile Exchange.
The gold price has seen slumps and rallies on Thursday with trading price jumping as high as $1,366 with intermittent drops to its lowest price of $1,345.50. Investors are shoring up their support for gold as the global currency market remains strained due to regulatory eases.
The euro saw an up tick of 0.28% to $1.39 versus the dollar with the US dollar index dropping 0.35% to $77.11. Kitco's gold index suggested that the spot price for gold rose higher than $5. The prices of gold might see a decline if the Friday's U.S. unemployment report suggest a dip.
There are many factors that are contributing towards the surge in gold prices, especially the unstable currency market. The yen has rode on the extensive bailouts and asset purchase programs of the Japanese government and has yet to see a decline. With the surge in the euro and the slump in the dollar, global economy outlook remains gloomier with the IMF warning of a global currency war.
The European Central Bank has kept its borrowing interest rate stable at 1% and other banks are weighing their options for a rise or cut. AngloGold Ashanti's elimination of its hedge book, which was around 3.22 million ounces, might have also contributed to the rising prices of gold.
