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Gold Gains After Low Prices Increased Demand

July 28, 2010 at 20:15 by Vladimir Vyun

Gold gained today in New York after the prices touched the lowest level in almost three months, boosting appeal of the precious metal. Some economists say that glorious days of gold are over and it’ll be long time before we’ll see another surge of the prices. Other experts insist that the current decline is short-term and the prices will rally again in a month or two. In the latter case, the current low prices may be considered as buying opportunity.

The main supportive factor for gold prices is demand in Asia, particularly in China and India, which grew after prices fell. There are some religious holidays in India by the end of August, which may possibly fuel demand for gold jewelry.

December futures for gold delivery gained $1.80 (0.2 percent) to $1,163.60 by 11:05 on COMEX. Futures dropped yesterday as low as $1,160.80 per ounce, the most in more than three weeks, as a rally in global stocks damped demand for gold as an alternative investment.

If you have any questions and comments on the commodities today, use the form below to reply.

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