Gold prices report on 12th June
1g. 34.02 EUR
1oz. 1058.00 EUR
Price in EUR per kg
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Gold prices report on 12th June
Global InterGold

The market has a wait-and-see approach ahead of the Fed's decision to rise or leave interest rates at present levels this week. With lower gold prices, this is a very convenient week to buy gold too.

Find all the details below.

The price of gold was still quite high on June 6th, when one ounce cost $1,294 as Western stock markets fell with longer-term interest rates. Gold prices in Yuan also reached their highest since late April: above ¥282 per gram because the Chinese currency rose against the dollar.

John Reade, chief market strategist for the World Gold Council, said at the Asia Pacific Precious Metals Conference in Singapore that day that: “Gold is not just for turbulent times, it has been a good source of returns over the last 10, 20 and 30 years.”

On Wednesday 7th, world stock markets rallied, making gold prices go down below $1,293 per ounce. “However, there is no denying gold has its buy boots on,” says London-based broker David Govett, “in fact, I suspect it will touch $1,300 at some point. Being long of gold is the way forward.” This positive forecast was supported by the German financial services group Commerzbank: "Gold is still in high demand."

The next day, gold prices went down again to $1,288 ahead of the US Federal Reserve meeting to be finished on June, 14th. For its part, the European Central Bank forecasted on Thursday 8th that interest rates “will remain at present levels for an extended period of time.”

According to Commerzbank, lower gold prices are not bad news because investors are clearly seeking to hedge against several risks. Moreover, Scotiabank was sure that gold is ready to reach a price of $1,300 soon.

On June 9th, several factors caused gold prices to drop to $1,280 an ounce, like the tensions in the Middle East and a stronger dollar. However, gold prices rallied in pounds to £1,007 because of the British elections and the uncertainty to move on with Brexit.

The market kept on having that wait-and-see attitude after the weekend as the Federal Reserve's decision on the pace of interest rate comes closer. Gold was priced at $1,269 on Monday 12th, Asian stocks fell and the dollar eased.

Gold is in high demand these days.

[BUY YOURS IN THE ONLINE GOLD SHOP]

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Published: 13.06.2017
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